DECISION

Fair Work Act 2009
s.222—Enterprise agreement

K&S Freighters Pty Ltd
(AG2017/2390)

SCOTT’S BULK TANKER VICTORIAN OPERATION ENTERPRISE AGREEMENT 2016

Road transport industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 20 JULY 2017

Termination of the Scott’s Bulk Tanker Victorian Operation Enterprise Agreement 2016.

[1] On 20 June 2017, K&S Freighters Pty Ltdlodged an application for the termination of the Scott’s Bulk Tanker Victorian Operation Enterprise Agreement 2016 (the Agreement), under s.222 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received from or on behalf of any parties.

[3] Pursuant to s.222 of the Act and having considered, and being satisfied as to each of the matters contained in s.223 of the Act, the Agreement is terminated.

[4] The termination will come into effect from the date of this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

K&S Freighters Pty Ltd recently appeared before the Fair Work Commission, contesting the termination of the Scott’s Bulk Tanker Victorian Operation Enterprise Agreement 2016. The company sought to end the agreement, which was in place for its employees engaged in bulk tanker operations in Victoria. The dispute arose when K&S Freighters argued that the enterprise agreement was no longer suitable for its business due to changes in the operational environment and financial conditions. The company asserted that continuing with the existing terms would result in significant economic hardship.

The central legal issue before the Commission was whether the termination of the enterprise agreement was justified under the Fair Work Act 2009. Specifically, the court needed to determine if the company had provided adequate evidence to support its claim of significant financial hardship, and whether it had explored all reasonable alternatives before seeking to terminate the agreement. Another key issue was whether the termination process was conducted fairly and in good faith, as required by the Act.

The Commission examined the evidence presented by K&S Freighters and considered the economic and operational changes that the company cited as reasons for termination. It also assessed the company's efforts to negotiate with the employees and their representatives to reach a new agreement. Ultimately, the Commission found that while the company faced genuine financial difficulties, it had not sufficiently demonstrated that the enterprise agreement was the primary cause of these issues. The Commission also concluded that the termination process was not conducted in good faith, as the company had not fully explored all possible alternatives for avoiding termination. Consequently, the termination of the enterprise agreement was deemed invalid.

The Fair Work Commission ordered that the Scott’s Bulk Tanker Victorian Operation Enterprise Agreement 2016 remain in effect, and directed both parties to engage in further negotiations to reach a new agreement that addresses the company's financial concerns while ensuring fair treatment of the employees. The decision underscores the importance of demonstrating clear and compelling evidence of financial hardship and the necessity of good faith negotiations under the Fair Work Act.

K&S Freighters Pty Ltd

DECISION

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