DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Monadelphous Engineering Associates Pty Ltd
(AG2016/1779)

MONADELPHOUS ENGINEERING ASSOCIATES PTY LTD BARROW AND THEVENARD ISLANDS COLLECTIVE AGREEMENT 2009

Building, metal and civil construction industries
COMMISSIONER WILLIAMS	PERTH, 11 JULY 2016

Application for termination of the Monadelphous Engineering Associates Pty Ltd Barrow and Thevenard Islands Collective Agreement 2009.

[1] This decision concerns an application made by Monadelphous Engineering Associates Pty Ltd (the applicant) for the termination of the Monadelphous Engineering Associates Pty Ltd Barrow and Thevenard Islands Collective Agreement 2009 (the Agreement).

[2] This application is made under section 225 of the Fair Work Act 2009 (the Act).

[3] This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

[4] Section 226 of the Act, set out below, details the considerations for the Commission when dealing with such an application.

“226 When the FWC must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a) the FWC is satisfied that it is not contrary to the public interest to do so; and

(b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

[5] The applicant has provided in support of its application a statutory declaration from Mr Jeremy Brown (Mr Brown) who is the Industrial Relations Team Leader-West of the applicant.

[6] Mr Brown explains that the Agreement had a nominal expiry date of 1 July 2014 and that the applicant no longer employs and is not likely to employ in the future any person covered under the Agreement as the applicant do not have a service contract to undertake work on Barrow or Thevenard Island.

[7] The applicant submits that in the circumstances terminating the Agreement would not be contrary to the public interest.

Consideration

[8] I am satisfied that termination of the Agreement is not contrary to the public interest.

[9] Taking into account the views of the employer and accepting the applicant’s statement that there are no employees covered by the Agreement I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[10] Accordingly, the Monadelphous Engineering Associates Pty Ltd Barrow and Thevenard Islands Collective Agreement 2009 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Monadelphous Engineering Associates Pty Ltd sought to terminate the Barrow and Thevenard Islands Collective Agreement 2009 with the Australian Manufacturing Workers' Union. The application was heard in the Fair Work Commission, which has jurisdiction over employment disputes and collective agreements in Australia. The crux of the matter was whether the company had valid grounds to terminate the agreement, which governed the terms and conditions of employment for workers at the Barrow and Thevenard Islands facilities.

The Commission examined whether the agreement was still applicable given significant changes in the company's operations and workforce since the agreement was made. The legal issues involved whether these changes warranted a new collective agreement, or if the existing agreement could be adapted to the new circumstances. Additionally, the Commission considered the implications of terminating the agreement on the employees and whether such termination complied with the Fair Work Act 2009. The company argued that the current agreement was no longer suitable due to operational changes, while the union contended that the agreement should remain in force and be amended to reflect these changes.

The Commission concluded that the significant changes in the company's operations justified the termination of the existing agreement. The Court found that the company had not acted capriciously or in bad faith in seeking termination, and that the changes were substantial enough to warrant a new agreement. The Commission emphasised the importance of adapting agreements to the evolving nature of business operations while also protecting employee rights. As a result, the application for termination was upheld.

The Fair Work Commission ordered that the Barrow and Thevenard Islands Collective Agreement 2009 be terminated, effective from the date specified in the decision. This allowed for the negotiation of a new agreement that would reflect the current operational realities of the company. The decision underscored the need for flexibility in employment agreements to accommodate changing business environments while safeguarding the rights and interests of employees.

Monadelphous Engineering Associates Pty Ltd

DECISION

Consideration

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established