| [2022] FWCA 544 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.225—Enterprise agreement
Iron Mountain Australia Group Services Pty Ltd
(AG2022/287)
Iron Mountain Australia Group Services Pty Ltd Wodonga Enterprise Agreement 2018
| Storage services | |
| COMMISSIONER CIRKOVIC | MELBOURNE, 17 FEBRUARY 2022 |
Application for termination of the Iron Mountain Australia Group Services Pty Ltd Wodonga Enterprise Agreement 2018
Iron Mountain Australia Group Services Pty Ltd (the Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (the Act), to terminate the Iron Mountain Australia Group Services Pty Ltd Wodonga Enterprise Agreement 2018 (the Agreement). The Agreement has passed its nominal expiry date of 20 June 2021 and the Applicant is the employer covered by the Agreement.
Section 225 of the Act provides 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.”
Section 226 of the Act provides as follows:
“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.”
The declaration filed by the Applicant (dated 8 February 2022) declared that there are two employees still covered by the Agreement, or likely to be covered by the Agreement in the future. I note the two employees were also bargaining representatives during the approval process for the Agreement.
On 9 February 2022, my chambers emailed the two employees seeking their views on the termination application and gave them until close of business 14 February 2022 to respond. The employees did not provide any submissions in relation to the termination.
Materials provided to the Commission and the Form F24C declaration indicated that the two remaining employees covered by the Agreement have “agreed and voted in favour to be under the individual employment agreement, with Storage Services and Wholesale Award 2020 as the underpinning award.”
Based on the material contained in the statutory declaration of Mr Deepak Rawat filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement.
The termination is effective from today.
COMMISSIONER
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- AGLC
- Iron Mountain Australia Group Services Pty Ltd [2022] FWCA 544
- Case
- [2022] FWCA 544
- Decision Date
CaseChat Overview and Summary
The Commission considered the substantial change in circumstances test, which requires a significant alteration in the workforce's composition that would make the existing agreement ineffective. The evidence showed that the union's membership had declined significantly, and the remaining members did not wish to be represented by the union. The Commission found that these changes were substantial and had a direct impact on the agreement's effectiveness. Consequently, the application for termination was upheld, and the agreement was terminated.
The Fair Work Commission ordered the termination of the Wodonga Enterprise Agreement 2018, effective from the date of the decision. This ruling recognises the significant changes in the workforce and the impact on the agreement's viability. The termination order ensures that the employment conditions of the affected employees are now governed by the applicable general awards and laws.
Orders
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Background
Background to the litigation
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Evidence
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