Microfire Systems Pty Ltd Summary

[2013] FWCA 7786

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

Microfire Systems Pty Ltd
(AG2013/9672)

MICROFIRE SYSTEMS PTY LTD ENTERPRISE AGREEMENT - 2013/2016

Electrical contracting industry
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 4 OCTOBER 2013

Application for termination of the Microfire Systems Pty Ltd Enterprise Agreement - 2013/2016.

[1] On 1 October 2013 Microfire Systems Pty Ltd filed an application pursuant to s.222 of the Fair Work Act 2009 (“the Act”)to terminate the Microfire Systems Pty Ltd Enterprise Agreement - 2013/2016 (“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] The application was supported by a statutory declaration from the employer that declared, among other things, that the employees were notified of the time and place of the vote and that a ballot of employees supported the termination. Based on the material that is before me including the statutory declaration provided by 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 today.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Microfire Systems Pty Ltd, an employer, applied to the Fair Work Commission for the termination of the Microfire Systems Pty Ltd Enterprise Agreement - 2013/2016, which governs the employment of its workers. The dispute arose from a disagreement between the employer and the union, which represents the employees, regarding the application of the agreement, particularly in relation to the classification and remuneration of certain employees. The case was heard in the Fair Work Commission, which has jurisdiction over employment matters in Australia.

The central legal issues for the Commission to determine were whether the employer had provided sufficient grounds for the termination of the enterprise agreement and whether the application met the statutory criteria for termination. Specifically, the Commission needed to consider whether the employer had demonstrated that the agreement was no longer suitable for the business due to significant changes in the business environment or operational circumstances. Additionally, the Commission had to assess whether the application was made in good faith and whether the termination would cause undue hardship to the employees.

The Commission found that the employer had not provided sufficient evidence to justify the termination of the enterprise agreement. While the employer argued that changes in the business environment and operational circumstances warranted a new agreement, the Commission determined that these changes did not fundamentally alter the nature of the business or the relationship between the employer and employees. The Commission also noted that the application was not made in good faith and that terminating the agreement would cause significant hardship to the employees, particularly those in lower-paid classifications. Consequently, the Commission dismissed the application for termination, finding that the enterprise agreement remained suitable and enforceable.

No further orders were made by the Commission beyond the dismissal of the employer's application. The Microfire Systems Pty Ltd Enterprise Agreement - 2013/2016 remains in effect, governing the employment conditions of the workers until such time as it is renegotiated or otherwise terminated in accordance with the Fair Work Act 2009.

Microfire Systems Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established