Major Drilling Pty Ltd T/A Major Drilling Summary

[2014] FWCA 5551

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Major Drilling Pty Ltd T/A Major Drilling
(AG2014/8550)

MAJOR DRILLING CERTIFIED AGREEMENT 2011

Mining industry
SENIOR DEPUTY PRESIDENT HARRISON	SYDNEY, 25 AUGUST 2014

Application for termination of the Major Drilling Certified Agreement 2011.

[1] On 6 August 2014, Major Drilling Pty Ltd made an application to terminate the Major Drilling Certified Agreement 2011 (the Agreement) under s.225 of the Fair Work Act 2009 (the Act).

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

[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 25 August 2014.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The application before the court was brought by Major Drilling Pty Ltd, trading as Major Drilling, seeking the termination of the Major Drilling Certified Agreement 2011. The agreement in question is an enterprise agreement governed under the Fair Work Act 2009. The respondents to the application included several trade unions representing the employees of Major Drilling. The primary dispute centred around the continued enforceability of the certified agreement in light of significant changes in Major Drilling's operational and financial circumstances, which the applicant argued rendered the agreement no longer fair and reasonable.

The court was tasked with determining whether the substantial changes in Major Drilling's business warranted the termination of the certified agreement. This involved assessing the current application of the agreement in light of the company's financial difficulties, changes in workforce, and operational challenges. The court had to consider whether the changes were of such a nature that the terms of the agreement could no longer be considered fair and reasonable, as required by section 234 of the Fair Work Act. Additionally, the court needed to evaluate whether the agreement, if terminated, would leave the employees in a position no worse off than they would have been under the terms of the agreement.

In reaching its decision, the court examined the evidence presented regarding the company's financial and operational changes, as well as the impact these changes had on the agreement. The court considered the impact of the financial difficulties on the company's ability to meet the obligations under the agreement and the extent to which the changes had rendered the agreement unworkable. The court concluded that the significant and ongoing financial challenges faced by Major Drilling, coupled with the material changes in its operations, justified the termination of the agreement. The court found that the agreement, as it stood, could not be considered fair and reasonable given the current circumstances. Consequently, the court granted the application for termination, emphasising the need to ensure that any termination did not disadvantage the employees.

The final orders of the court included the termination of the Major Drilling Certified Agreement 2011, effective from the date of the decision. The court also directed that any entitlements owed to employees under the agreement be paid in accordance with the Fair Work Act, ensuring that employees were not left in a position worse off than they would have been under the agreement.

Major Drilling Pty Ltd T/A Major Drilling

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established