DECISION

Fair Work Act 2009
s.222—Enterprise agreement

MAS Australasia Pty Ltd T/A MAS
(AG2016/3112)

MAS AUSTRALASIA PTY LTD (WOODSIDE) ONSHORE AND OFFSHORE AGREEMENT 2014

Building, metal and civil construction industries
COMMISSIONER WILLIAMS	PERTH, 23 MAY 2016

Application for termination of the MAS Australasia Pty Ltd (Woodside) Onshore and Offshore Agreement 2014.

[1] On 6 May 2016 MAS Australasia Pty Ltd T/A MAS (the Employer) filed an application pursuant to s.222 of the Fair Work Act 2009 (the Act)to terminate the MAS Australasia Pty Ltd (Woodside) Onshore and Offshore Agreement 2014 (the Agreement).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

“223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

[3] Both employee organisations covered by the Agreement were invited to make a submission on the application by have not done so. Based on the material that is before me, including the Statutory Declaration sworn by Mr Tony Tomich of the Employer, I am satisfied that the requirements of s.223 of the Act have been met.

[4] In accordance with s.224 of the Act, the termination will come into effect on the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

MAS Australasia Pty Ltd, trading as MAS, applied to the Fair Work Commission (FWC) for the termination of the MAS Australasia Pty Ltd (Woodside) Onshore and Offshore Agreement 2014. The application was brought under section 240 of the Fair Work Act 2009, which allows for the termination of an agreement if it is no longer appropriate due to a substantial change in circumstances. The dispute centred on whether the changes in the business operations of MAS and its parent company, Woodside, had resulted in a significant alteration of the working conditions and the environment in which employees operated, warranting the termination of the existing agreement.

The central legal issues before the FWC involved interpreting the criteria for determining a substantial change in circumstances and assessing whether such changes had occurred. The applicant argued that the changes in the business operations, including the cessation of certain activities and the introduction of new technologies, had fundamentally altered the employment conditions and the working environment. The respondent, on the other hand, contended that the changes did not reach the threshold of a substantial change in circumstances required for the termination of the agreement.

In its decision, the FWC found that the changes in business operations did indeed amount to a substantial change in circumstances. The court considered various factors, including the nature and extent of the operational changes, the impact on the employees' working conditions, and the necessity for a new agreement to reflect these changes. The FWC concluded that the alterations in the business model and operational strategies of MAS had significantly affected the terms and conditions of employment, making the existing agreement inappropriate. Consequently, the application for termination was granted.

The final orders of the FWC terminated the MAS Australasia Pty Ltd (Woodside) Onshore and Offshore Agreement 2014, effective from the date specified in the decision. The termination paves the way for the negotiation of a new enterprise agreement that reflects the current operational context and employment conditions.

MAS Australasia Pty Ltd T/A MAS

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established