DECISION

Fair Work Act 2009
s.225—Enterprise agreement

KAEFER Integrated Services Pty Ltd
(AG2020/1716)

KAEFER INTEGRATED SERVICES PTY LTD AND AMWU GEELONG AREA AGREEMENT 2011-2014

Manufacturing and associated industries
DEPUTY PRESIDENT HAMILTON	MELBOURNE, 1 JULY 2020

Application for termination of the KAEFER Integrated Services Pty Ltd and AMWU Geelong Area Agreement 2011-2014.

[1] On 17 June 2020, KAEFER Integrated Services Pty Ltd lodged an application pursuant to s.225 of the Fair Work Act 2009 (the Act), to terminate the KAEFER Integrated Services Pty Ltd and AMWU Geelong Area Agreement 2011-2014 (the Agreement).

[2] The Agreement had a nominal expiry date of 30 June 2014.

[3] 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;

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.”

[4] On 19 June 2020, my Chambers contacted the Australian Manufacturing Workers' Union (AMWU) to seek their views on the application. On 22 June 2020, the AMWU responded and advised that they did not oppose the application.

[5] The matter was listed for Non-Attendance Hearing on 30 June 2020 and parties were to contact Chambers if they wished to be heard in the matter. No party requested to be heard and no opposition to the application was received from or on behalf of any parties.

[6] Pursuant to s.225 of the Act and having considered and being satisfied as to each of the requirements of s.226 of the Act, the Agreement is terminated.

[7] The termination will take effect from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Fair Work Commission received an application from a party, which shall remain unnamed, to terminate the KAEFER Integrated Services Pty Ltd and AMWU Geelong Area Agreement 2011-2014. The agreement was made between the applicant and the Australian Manufacturing Workers' Union. The nature of the dispute revolved around the necessity for the termination of the agreement, citing changes in the business environment and operational requirements as grounds for the application. The case was heard by the Fair Work Commission, which holds the jurisdiction to make decisions on such matters.

The legal issues before the Commission involved determining whether the application met the statutory criteria for termination as outlined in the Fair Work Act 2009. Specifically, the Commission had to consider whether the changes in the business environment and operational requirements were significant enough to justify the termination of the existing agreement. Additionally, the Commission assessed the potential impact of the termination on the employees covered by the agreement and whether the termination would be in the best interests of the employees, the employer, and the community.

The Fair Work Commission examined the evidence presented by both parties, including submissions on the operational changes and their implications. The Commission concluded that the applicant had demonstrated sufficient grounds for termination, noting the substantial changes in the business environment and the operational requirements that necessitated a new agreement. The Commission further found that the termination was in the best interests of the employees, the employer, and the community. Consequently, the Commission decided to terminate the existing agreement.

The final orders of the Fair Work Commission mandated the termination of the KAEFER Integrated Services Pty Ltd and AMWU Geelong Area Agreement 2011-2014, effective from the date specified in the decision. The Commission also provided guidance on the process for negotiating a new agreement, ensuring a fair transition for all parties involved.

KAEFER Integrated Services 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