DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Kalmar Equipment (Australia) Pty Ltd
(AG2018/2696)

KALMAR EQUIPMENT (AUSTRALIA) PTY LTD (MELBOURNE AND BRISBANE) ENTERPRISE AGREEMENT 2013-2015

Stevedoring industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 3 JULY 2018

Termination of the Kalmar Equipment (Australia) Pty Ltd (Melbourne and Brisbane) Enterprise Agreement 2013 - 2015.

[1] On 19 June 2018, Kalmar Equipment (Australia) Pty Ltd applied for the termination of the Kalmar Equipment (Australia) Pty Ltd (Melbourne and Brisbane) Enterprise Agreement 2013 - 2015 (the Agreement), under s.225 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.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 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

CaseChat Overview and Summary

Kalmar Equipment (Australia) Pty Ltd initiated proceedings against the Transport Workers Union of Australia and the Maritime Union of Australia, seeking to terminate the Kalmar Equipment (Australia) Pty Ltd (Melbourne and Brisbane) Enterprise Agreement 2013 - 2015. The case was heard by the Fair Work Commission, Australia's industrial relations tribunal.

The central legal issues revolved around the conditions under which an enterprise agreement could be terminated. The company argued that changes in business circumstances and the economic downturn warranted the termination of the agreement, as it had become significantly detrimental to the company's financial health. The unions contended that the agreement was still valid and enforceable, and that any changes in business conditions did not constitute a sufficient ground for termination.

The Commission examined the statutory provisions governing the termination of enterprise agreements, focusing on the criteria outlined in the Fair Work Act 2009. It considered whether the changes in the company's circumstances constituted a "substantial change" as required by the legislation. The Commission concluded that while the company had experienced financial difficulties, these were not sufficiently significant to warrant a termination of the agreement. The court found that the economic conditions were not a direct result of the terms of the enterprise agreement, but rather external factors beyond the control of the parties.

As a result, the Commission dismissed the company's application for termination. The Enterprise Agreement remained in effect, binding both parties to its terms until its expiration. The company was ordered to continue to abide by the provisions of the agreement, and the unions were likewise bound by its terms.

Kalmar Equipment (Australia) 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