Inspec Group Pty Ltd T/A Inspec Industries

[2024] FWCA 733

[2024] FWCA 733

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.222—Enterprise agreement

Inspec Group Pty Ltd T/A Inspec Industries

(AG2024/371)

SHARPS HEAVY EQUIPMENT REPAIRS PTY LTD COLLECTIVE AGREEMENT 2013

Manufacturing and associated industries
COMMISSIONER HUNT	BRISBANE, 28 FEBRUARY 2024

Application for termination of the Sharps Heavy Equipment Repairs Pty Ltd Collective Agreement 2013

1. On 19 February 2024, Inspec Group Pty Ltd T/A Inspec Industries (the Employer) made an application pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the Sharps Heavy Equipment Repairs Pty Ltd Collective Agreement 2013 (the Agreement).

1. The Agreement covers Sharps Heavy Equipment Repairs Pty Ltd. Mr Rod Allen, Managing Director of the Employer filed a witness statement advising the following:

“On 2 July 2020 the entity name was changed from Sharp’s Heavy Equipment Repairs Pty Ltd to Inspec Group Pty Ltd.

In July 2020, I also changed our trading name from Sharps Heavy Equipment Repairs and commenced trading as Inspec Industries. …

Both Sharp’s Heavy Equipment Pty Ltd and Inspec Group Pty Ltd retained the same ABN 96 063 710 789, as such the employer now know[n] as Inspec Group Pty Ltd (trading as Inspec Industries) remained covered by the Sharps Heavy Equipment Repairs Pty Ltd Collective Agreement 2013.”

1. After conducting an ABN Lookup, the historical details of the Employer’s ABN confirmed that the entity name was Sharps Heavy Equipment Repairs Pty Ltd from 9 February 2000 to 2 July 2020 when it changed to Inspec Group Pty Ltd.

1. I am therefore satisfied that the Employer is an employer covered by the Agreement, for the purpose of Subdivision C of Division 7 of Part 2-4 of the Act and can therefore make this application.

1. The Employer stated in the Form F24 that the termination was agreed to on 16 February 2024. I am satisfied that this application has been made within 14 days after the termination was agreed to, as required by s.222(3)(a) of the Act.

1. Section 223 of the Act sets out the conditions which, if established, require the Commission to terminate the Agreement pursuant to s.222 of the Act. Section 223 provides as follows:

“223      When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a)       the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b)       the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c)       the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d)       the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

1. The application was supported by a Form F24A statutory declaration made by Mr Heath Thiele, Human Resources Manager of the Employer, which declared, amongst other things, that the 13 employees covered by the Agreement were notified of the time and place of the vote, that the vote would be taken by secret ballot, and that of the 11 votes cast, 11 employees approved the termination of the Agreement.

1. If the Agreement is terminated, the employees currently covered by the Agreement will instead be covered by the Manufacturing and Associated Industries and Occupations Award 2020 (the Award).  Employees requested to vote to terminate the Agreement were informed of the following by the Employer in consideration of the vote:

“There will be no impact to current pay if the Sharps Collective Agreement is cancelled as payment terms are well above the Agreement terms, Award terms, and are maintained through employment contracts.”

1. For the purpose of s.223(d) of the Act, I note that there are no employee organisations covered by the Agreement whose views are required to be taken into account.

1. In consideration of the material before me, including the statutory declaration, witness statement and the supporting material, I am satisfied that the requirements of s.223 of the Act have been met. In accordance with s.223, I must terminate the Agreement. The application to terminate the Agreement is approved.

1. The Employer has not nominated a preferred date for the termination of the Agreement.

1. Having regard to s.227 of the Act, the termination will operate from the day of this decision, being 28 February 2024.

COMMISSIONER

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