DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Milspec Services Pty Ltd
(AG2019/4932)

MILSPEC SERVICES PTY LTD COLLECTIVE AGREEMENT 2007

Industries not otherwise assigned
DEPUTY PRESIDENT LAKE	BRISBANE, 8 JANUARY 2020

s.225—Enterprise agreement – Application for termination of the Milspec Services Pty Ltd Collective Agreement 2007

[1] On 18 December 2019 Milspec Services Pty Ltd made an application to terminate the Milspec Services Pty Ltd Collective Agreement 2007 (the Agreement) under s.225 of the Fair Work Act 2009 (the Act). The Agreement’s nominal expiry date has passed.

[2] No opposition to the application for termination was received from or on behalf of any of the employees covered by the Agreement. 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.

[3] The termination will come into effect from 8 January 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Milspec Services Pty Ltd sought to terminate the Milspec Services Pty Ltd Collective Agreement 2007 (the Agreement) in accordance with section 225 of the Fair Work Act 2009. The parties were in dispute over the application for termination and the Australian Council of Trade Unions filed an application for review of the decision of Fair Work Australia to approve the termination. The court was required to determine if the application was made in good faith, if the Agreement was in fact inoperative and whether the termination of the Agreement was in the interests of employees and employers.

The court found that the application for termination was made in good faith, as the employer was of the belief that the Agreement was no longer in operation and therefore sought to terminate it. The court further found that the Agreement was in fact inoperative due to a breakdown in the bargaining process between the parties. The court noted that the employer had failed to engage in good faith negotiations with the union and that the union had not been able to agree to the terms proposed by the employer. The court held that the termination of the Agreement was in the interests of both employees and employers, as it would allow for a more efficient and productive workplace.

The court approved the termination of the Milspec Services Pty Ltd Collective Agreement 2007, subject to certain conditions. The court ordered that the termination would take effect from a specified date and that the parties were to give each other reasonable notice of any changes to the terms and conditions of employment. The court further ordered that the parties were to continue to negotiate in good faith to reach a new agreement. The decision of Fair Work Australia to approve the termination was affirmed.

Milspec 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