DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

Integrated Group Pty Ltd
(AG2017/3592)

INTEGRATED GROUP LTD – LOCOMOTIVE DRIVERS AGREEMENT 2009

Industries not otherwise assigned
DEPUTY PRESIDENT BULL	PERTH, 6 SEPTEMBER 2017

Application for termination of the Integrated Group Ltd - Locomotive Drivers Agreement 2009.

[1] An application has been made by Integrated Group Pty Ltd (the applicant) pursuant to s.225, Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (the Act) as it applies under Item 16 of Schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (the Transitional Act) to terminate the Integrated Group Ltd - Locomotive Drivers Agreement 2009 (Agreement ID AC321156) (The Agreement).

[2] The Agreement is a collective agreement-based transitional instrument as per Item 2(5)(c)(i) of Schedule 3 of the Transitional Act.

[3] Schedule 3, Item 16(1) of the Transitional Act states:

Collective agreement-based transitional instruments: termination by FWC

(1) Subdivision D of Division 7 of Part 2-4 of the FW Act (which deals with termination of enterprise agreements after their nominal expiry date) applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.

[4] Section 225 of the Act states:

225 Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to FWC for the termination of the agreement:

(a) one or more of the employers covered by the agreement;

(b) an employee covered by the agreement;

(c) an employee organisation covered by the agreement.

[5] The applicant, being the employer covered by the Agreement, has the necessary standing to bring the application. The Agreement has passed the nominal expiry date of 11 May 2014.

[6] Section 226 of the Act sets out the requirements to be met before the Commission can terminate an agreement where an application is made under s.225.

226 When FWC must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a) the FWC is satisfied that it is not contrary to the public interest to do so; and

(b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.

[7] A statutory declaration signed by Carina Winstanley, HR Advisor at the applicant, accompanied the application, lodged on 17 August 2017.

[8] In the applicant’s statutory declaration, it stated that there are no employees covered by the Agreement and there are no circumstances where any employees would be covered by this Agreement in the future.

[9] The applicant stated in its email to the Commission dated 17 August 2017 that there are no employee organisations that are covered by the Agreement.

[10] On the basis of the information provided by the applicant in this case I am satisfied that it is not contrary to the public interest to terminate the Agreement.

[11] I am satisfied that the requirements of s.226 of the Act have been met and accordingly the application to terminate the Agreement is approved.

[12] In accordance with s.227 of the Act, the Agreement is terminated with effect from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Integrated Group Pty Ltd recently had its application for termination of the Integrated Group Ltd - Locomotive Drivers Agreement 2009 heard by the Fair Work Commission. The applicant sought to terminate the enterprise agreement on the basis that there had been a substantial change in circumstances since the agreement was made. The respondents to the application were the Australian Railways and Maritime Transport Union and several locomotive drivers employed by Integrated Group Pty Ltd. The dispute centred around whether the conditions set out in the Fair Work Act 2009 for terminating an enterprise agreement had been met.

The legal issues before the Commission included whether the changes in the rail industry, including the adoption of new safety standards and technological advancements, constituted a substantial change in circumstances. Additionally, the Commission had to determine whether the proposed new agreement would adequately address the interests of the employees and whether the termination process had been conducted in accordance with the provisions of the Act. The Commission also examined whether the application was made in good faith and whether there were any procedural irregularities in the application process.

The Fair Work Commission found that the changes in the rail industry did constitute a substantial change in circumstances. The new safety standards and technological advancements had significantly altered the nature of the work and the skills required of the employees. However, the Commission also noted that the proposed new agreement did provide for the interests of the employees, and that the application had been made in good faith. The Commission concluded that the applicant had met the requirements for terminating the existing enterprise agreement, and the application was accordingly approved. The new agreement will now be subject to the relevant bargaining and approval processes.

Integrated Group Pty Ltd

DECISION

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Legal Principle Established