Iron Mountain Australia Group Services Pty Ltd

Case [2022] FWCA 3913


[2022] FWCA 3913

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Iron Mountain Australia Group Services Pty Ltd

(AG2022/4465)

IRON MOUNTAIN AUSTRALIA GROUP SERVICES PTY LTD ACT - ENTERPRISE AGREEMENT 2019

Storage services

DEPUTY PRESIDENT DEAN

CANBERRA, 11 NOVEMBER 2022

Application for termination of the Iron Mountain Australia Group Services Pty Ltd ACT - Enterprise Agreement 2019.

  1. Iron Mountain Australia Group Services Pty Ltd (Applicant) has made an application pursuant to s.225 of the Fair Work Act 2009 to terminate the Iron Mountain Australia Group Services Pty Ltd ACT - Enterprise Agreement 2019 (the Agreement).

  1. The Agreement has passed its nominal expiry date of 31 August 2022 and does not cover any employee organisations.

  1. The relevant provisions of the Act governing this application are as follows:

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 the 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.

226     When the 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.

227      When termination comes into operation
If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.

  1. On 27 October 2022, the Applicant was directed to circulate to the affected employees my directions which set out an overview of the application and requested that any persons who wished to oppose the application to advise my chambers by 10 November 2022.

  1. No opposition to the application has been received from or on behalf of any employees.

  1. In the circumstances, I consider it appropriate to determine the matter on the basis of the material before the Commission.

  1. The application was supported by a statutory declaration made by Mr Deepak Rawat, Senior Human Resources Business Partner of the Applicant. Mr Rawat stated that:

·  there are five employees currently covered under the Agreement and the Applicant is not planning to recruit any staff in the near future;

·  a majority of employees voted in favour of the proposed termination the Agreement;

·  if the Agreement is terminated, employees would enter into individual employment agreement underpinned by the Storage Services and Wholesale Award 2020; and

·  the Applicant would retain the higher wage rates under the Agreement and that employees would receive a 2.99% pay increase together with other above-award entitlements upon termination of the Agreement.

  1. On the basis of the information provided, I am satisfied that it is not contrary to the public interest to terminate the Agreement and it is appropriate to do so taking into account all the circumstances of this matter.

  1. I have considered, and am satisfied the requirements of s.226 for the termination of an enterprise agreement after its nominal expiry date have been met. Accordingly, the Agreement is terminated.

  1. The termination will come into effect from 11 October 2022.


DEPUTY PRESIDENT

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Details
AGLC
Iron Mountain Australia Group Services Pty Ltd [2022] FWCA 3913
Case
[2022] FWCA 3913
Decision Date

CaseChat Overview and Summary

Iron Mountain Australia Group Services Pty Ltd applied to the Fair Work Commission for the termination of the Iron Mountain Australia Group Services Pty Ltd ACT - Enterprise Agreement 2019 (the Agreement) after its nominal expiry date. The Agreement had passed its nominal expiry date of 31 August 2022 and did not cover any employee organisations. The applicant sought to terminate the agreement and replace it with individual employment agreements underpinned by the Storage Services and Wholesale Award 2020. The application was supported by a statutory declaration from the Senior Human Resources Business Partner of the applicant, who stated that a majority of employees voted in favour of the proposed termination of the Agreement and that employees would receive a 2.99% pay increase together with other above-award entitlements upon termination of the Agreement.

The court was required to determine whether it was appropriate to terminate the Agreement after its nominal expiry date. The relevant provisions of the Fair Work Act 2009 governing this application were s.225, s.226, and s.227. The court considered whether it was not contrary to the public interest to terminate the agreement and whether it was appropriate to do so taking into account all the circumstances of this matter. The court also considered the views of the employees, each employer, and each employee organisation (if any), covered by the agreement and the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.

The court found that it was not contrary to the public interest to terminate the Agreement and it was appropriate to do so taking into account all the circumstances of this matter. The court was satisfied that the requirements of s.226 for the termination of an enterprise agreement after its nominal expiry date had been met. The court terminated the Agreement, which will come into effect from 11 October 2022. The employees will enter into individual employment agreements underpinned by the Storage Services and Wholesale Award 2020 and will receive a 2.99% pay increase together with other above-award entitlements upon termination of the Agreement.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

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