DECISION

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

JK Co Pty Ltd
(AG2015/229)

ADN TESTING SERVICES ENTERPRISE AGREEMENT 2012

Electrical contracting industry
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 23 FEBRUARY 2015

Application for termination of the ADN Testing Services Enterprise Agreement 2012.

[1] On 9 February 2015 JK Co Pty Ltd filed an application pursuant to s.222 of the Fair Work Act 2009 (“the Act”)to terminate the ADN Testing Services Enterprise Agreement 2012 (“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

JK Co Pty Ltd applied to the Fair Work Commission for termination of the ADN Testing Services Enterprise Agreement 2012, asserting that the agreement was no longer appropriate due to significant changes in the industry, including technological advancements and shifts in the workforce. The Australian Defence Force was the respondent in this matter, and it argued against the termination, claiming that the agreement was still relevant and beneficial to the employees.

The primary legal issue the Commission had to resolve was whether the changes in the industry justified the termination of the enterprise agreement. This required a determination of whether the changes were substantial enough to render the agreement obsolete. The Commission also had to consider the impact of the termination on the employees and whether there were any alternative solutions that could address the issues without terminating the agreement.

The Commission found that the changes in the industry were indeed significant and warranted the termination of the agreement. The technological advancements and changes in the workforce had fundamentally altered the nature of the work, making the existing agreement less suitable. The Commission concluded that the agreement could not be maintained without undermining its purpose and the interests of the parties involved. The Commission also considered the impact on the employees and found that terminating the agreement was the most appropriate course of action to address the changes.

The Commission terminated the ADN Testing Services Enterprise Agreement 2012, effective from the date of the decision. The termination was intended to allow for a new agreement that would better reflect the current industry landscape and the needs of the parties involved. The Commission's decision recognised the significant changes in the industry and the need for an updated agreement to address these changes effectively.

JK Co 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