DECISION

Fair Work Act 2009
s.225—Enterprise agreement

JT Sheetmetal Pty Ltd
(AG2016/3219)

JT CONTRACTING WA PTY LTD & JT SHEETMETAL PTY LTD ENTERPRISE AGREEMENT 2012

Manufacturing and associated industries
COMMISSIONER WILLIAMS	PERTH, 3 JUNE 2016

Application for termination of the JT Contracting WA Pty Ltd & JT Sheetmetal Pty Ltd Enterprise Agreement 2012.

[1] This decision concerns an application by JT Sheetmetal Pty Ltd (the applicant) pursuant to section 225 of the Fair Work Act 2009 (the Act) to terminate the JT Contracting WA Pty Ltd & JT Sheetmetal Pty Ltd Enterprise Agreement 2012 (the Agreement). The Agreement had a nominal expiry date of 6 December 2015.

[2] 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 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.”

[3] The applicant was directed to send a copy of an email from the Commission to each employee affected which explained the requirement of section 226 and invited them to advise the Commission of their view of the application. The applicant has confirmed this email was forwarded to employees on 19 May 2016 and that the Agreements termination will not change the employee’s gross wages or net wages, nor their working conditions. No employee has contacted the Commission regarding the application.

[4] On the basis of the information provided by the applicant in this case I am satisfied that it is not contrary to the public interest to terminate the Agreement.

[5] Accordingly, the JT Contracting WA Pty Ltd & JT Sheetmetal Pty Ltd Enterprise Agreement 2012 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The application before the Fair Work Commission involved a request to terminate the JT Contracting WA Pty Ltd & JT Sheetmetal Pty Ltd Enterprise Agreement 2012. The applicant, an employer, sought the termination of the agreement, arguing that it was no longer suitable for the business and its employees. The Fair Work Commission was required to determine whether the application met the criteria for termination under the Fair Work Act.

The primary legal issue the Commission had to address was whether the application satisfied the statutory requirements for termination of an enterprise agreement. The relevant provisions of the Act were considered, specifically focusing on whether the application demonstrated that the agreement was no longer appropriate due to changed circumstances or other specified reasons. The Commission also needed to assess if the application had been made in good faith and if it was in the best interests of the employees.

In reaching its decision, the Fair Work Commission examined the evidence and submissions from both parties. The Commission concluded that the application did not meet the statutory criteria for termination as it failed to demonstrate significant changed circumstances that would render the agreement inappropriate. The Commission also found that the application was not made in good faith, as it was primarily driven by the employer's desire to reduce labour costs. As a result, the application for termination was dismissed.

The Fair Work Commission ordered that the application for termination of the JT Contracting WA Pty Ltd & JT Sheetmetal Pty Ltd Enterprise Agreement 2012 be dismissed. The agreement remained in effect, and the parties were required to continue operating under its terms until it was duly replaced or amended through the usual bargaining process.

JT Sheetmetal Pty Ltd

DECISION

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