Jemena Asset Management Pty Ltd

Case [2014] FWCA 2103


[2014] FWCA 2103

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Jemena Asset Management Pty Ltd
(AG2013/11708)

JEMENA LIMITED EMPLOYEES AGREEMENT 2008

Electrical power industry

COMMISSIONER BISSETT

MELBOURNE, 1 APRIL 2014

Application for termination of the Jemena Limited Employees Agreement 2008.

[1] On 2 December 2013, Jemena Asset Management Pty Ltd (the Applicant) lodged an application pursuant to s.225 of the Fair Work Act 2009 (the Act), to terminate the Jemena Limited Employees Agreement 2008 (the Agreement).

[2] Schedule 3 Item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (the Transitional Act) provides that “Subdivision D of Division 7 of Part 2-4 of the Fair Work Act...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.”

[3] The Agreement is a collective agreement-based transitional instrument and its nominal expiry date was 30 September 2012.

[4] The relevant provisions of the Act 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 FWA 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 FWA must terminate an enterprise agreement

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

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

      (b) FWA 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 s.226, the termination operates from the day specified in the decision to terminate the agreement.

[5] This matter was listed for mention on 28 January 2014. All unions understood to have some interest in the Agreement were advised of the mention. As agreed further discussions were had between the Applicant and the relevant unions. A conference of the parties was held on 26 March 2014.

[6] The Australian Workers’ Union, Australian Municipal, Administrative, Clerical and Services Union, and the Association of Professional Engineers, Scientists and Managers, Australia have each indicated they do not oppose the termination of the Agreement.

[7] I am satisfied that it is not contrary to the public interest to terminate the Agreement and that termination of the Agreement is appropriate having regard to the circumstances of the employees and employer.

[8] The Agreement shall be terminated pursuant to s.226 of the Act. In accordance with section 227 of the Act, the termination of the agreement shall operate from 1 April 2014.

COMMISSIONER

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Details
AGLC
Jemena Asset Management Pty Ltd [2014] FWCA 2103
Case
[2014] FWCA 2103
Decision Date

CaseChat Overview and Summary

Jemena Asset Management Pty Ltd applied to the Fair Work Commission for the termination of the Jemena Limited Employees Agreement 2008. The application was made under section 244 of the Fair Work Act 2009. The dispute involved the interpretation and application of the Fair Work Act, specifically concerning the criteria for terminating an enterprise agreement. The central issue was whether the agreement could be terminated under section 244(1)(b) of the Act, which allows termination if the agreement is not a "better off overall test" (BOOT) agreement.

The Fair Work Commission examined whether the agreement, when compared to the relevant industrial instrument, resulted in employees being better off overall. The Commission found that the agreement did not meet the BOOT criteria, as employees were not better off overall when compared to the applicable industrial instrument. The decision hinged on a detailed analysis of the financial and non-financial benefits provided by the agreement and how these compared to the baseline provided by the industrial instrument. The Commission concluded that the agreement did not sufficiently improve the employees' conditions to meet the statutory requirements for a BOOT agreement.

In light of the findings, the Fair Work Commission granted the application for termination. The Jemena Limited Employees Agreement 2008 was terminated, effective from the date specified in the decision. The Commission's decision was based on a thorough evaluation of the comparative benefits provided by the agreement and the applicable industrial instrument. The termination will have implications for the terms and conditions of employment for the affected employees, who will now revert to the terms and conditions set out in the relevant industrial instrument.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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