DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Mr Glen McBlane
v
Sigma Services Group Pty Ltd
(AG2018/7034)

SIGMA SERVICES GROUP PTY LTD ENTERPRISE AGREEMENT 2013-2017

Security services
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 31 MAY 2019

Application for termination of the Sigma Services Group Pty Ltd Enterprise Agreement 2013-2017.

[1] Mr Glen McBlane is employed by Sigma Services Group Pty Ltd (Sigma). Mr McBlane is covered by the Sigma Services Group Pty Ltd Enterprise Agreement (Enterprise Agreement) and has made an application to terminate the Enterprise Agreement pursuant to s 225 of the Fair Work Act 2009 (Cth) (Act). The nominal expiry date of the Enterprise Agreement was 17 March 2017.

[2] Sigma consents to the termination of the Enterprise Agreement.

[3] There are no employee organisations covered by the Enterprise Agreement.

[4] I am satisfied that the employees covered by the Enterprise Agreement have been given an opportunity to inform the Fair Work Commission (Commission) of their views in relation to the application to terminate the Enterprise Agreement. The Commission has not received any witness statement or communication from an employee of Sigma (save for Mr McBlane) in relation to the application to terminate the Enterprise Agreement.

[5] In support of the application, Mr McBlane relies on his statutory declaration made on 14 December 2018 and his witness statement made on 13 March 2019. I accept Mr McBlane’s evidence that his wages and conditions of employment would improve if the Security Services Industry Award 2010 applied to him rather than the Enterprise Agreement.

[6] Having regard to the information contained in Mr McBlane’s statutory declaration and his witness statement, I am satisfied that: 1

• termination of the Enterprise Agreement is not contrary to the public interest; and

• it is appropriate to terminate the Enterprise Agreement taking account all the circumstances including:

• the views of the employees covered by the Enterprise Agreement and Sigma; and

• the circumstances of those employees and Sigma, including the likely effect that the termination will have on each of them.

[7] Accordingly, I terminate the Enterprise Agreement with effect from midnight on Friday, 7 June 2019. An order [PR708925] giving effect to this decision will be issued today.

DEPUTY PRESIDENT

1 Section 226 of the Fair Work Act 2009 (Cth)

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission was an application by Mr Glen McBlane to terminate the Sigma Services Group Pty Ltd Enterprise Agreement 2013-2017. The applicant, Mr McBlane, argued that the enterprise agreement was no longer appropriate given the changes in the business environment and the nature of the workforce. The respondent, Sigma Services Group Pty Ltd, opposed the termination, asserting that the agreement was still relevant and beneficial to both parties.

The central legal issue was whether the application met the statutory criteria for terminating an enterprise agreement under the Fair Work Act 2009. Specifically, the Commission had to consider whether the agreement had become unsuitable due to significant changes in the workplace or if it was no longer appropriate for the employees. The Commission also needed to determine if the termination was in the best interest of the employees, taking into account their views and any potential impact on their conditions of employment.

In its decision, the Fair Work Commission carefully analysed the evidence presented by both parties. The Commission found that while there had been changes in the business environment, these changes did not necessarily render the existing enterprise agreement unsuitable. The Commission also considered the views of the employees, which showed a mix of support and opposition to the termination. Ultimately, the Commission concluded that the application did not meet the statutory requirements for termination, as the enterprise agreement remained appropriate and in the best interests of the majority of employees. Consequently, the application was dismissed.

The Fair Work Commission ordered that the Sigma Services Group Pty Ltd Enterprise Agreement 2013-2017 continue in effect until its scheduled expiry. The Commission also directed that the parties should continue to negotiate in good faith to address any concerns and to seek a new agreement that reflects the current workplace realities. This decision ensures that the enterprise agreement remains a valid and binding document, promoting stability and certainty in the workplace.

Mr Glen McBlane v Sigma Services Group 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