DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

Integria Healthcare (Australia) Pty Ltd
(AG2015/2299)

INTEGRIA HEALTHCARE (AUSTRALIA) PTY LTD AND EMPLOYEES ENTERPRISE AGREEMENT 2013

Pharmaceutical industry
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 13 APRIL 2015

Application for termination of the Integria Healthcare (Australia) Pty Ltd ACN 096496212 and Employees Enterprise Agreement 2013.

[1] On 1 April 2015 Integria Healthcare (Australia) Pty Ltd filed an application pursuant to s.222 of the Fair Work Act 2009 (“the Act”)to terminate the Integria Healthcare (Australia) Pty Ltd ACN 096496212 and Employees Enterprise Agreement 2013 (“the Agreement”).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

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.

[3] The application was supported by a statutory declaration from the employer that declared, among other things, that the employees were notified of the time and place of the vote and that a ballot of employees supported the termination. Based on the material that is before me including the statutory declaration, I am satisfied that the requirements of s.223 of the Act have been met.

[4] In accordance with s.224 of the Act, the termination will come into effect today.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of an application for termination of the Integria Healthcare (Australia) Pty Ltd ACN 096496212 and Employees Enterprise Agreement 2013, the Fair Work Commission was tasked with reviewing the application filed by the employer. The employer sought to terminate the existing enterprise agreement, citing significant financial difficulties and a need for flexibility in workforce management to remain competitive in the healthcare sector. The union representing the employees contested the application, arguing that the enterprise agreement was still operational and that any termination would adversely affect the employees' rights and conditions.

The primary legal issue before the Commission was whether the employer had demonstrated sufficient grounds to justify the termination of the enterprise agreement under the Fair Work Act. The Commission had to consider whether the employer's financial difficulties and operational needs warranted a departure from the existing agreement. Additionally, the Commission needed to assess the impact of such a termination on the employees and whether there were alternative solutions that could be pursued without resorting to termination.

The Commission, after reviewing the evidence and submissions from both parties, determined that the employer had not provided sufficient evidence to meet the threshold for terminating the enterprise agreement. The employer's financial difficulties, while acknowledged, did not constitute the "serious and irreparable harm" required by the Act. Furthermore, the Commission found that alternative dispute resolution mechanisms could address the operational issues without necessitating the termination of the agreement. Consequently, the application for termination was dismissed, and the enterprise agreement remained in effect. The Commission's decision emphasised the importance of exploring all available avenues for resolution before considering termination.

Integria Healthcare (Australia) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established