DECISION

Fair Work Act 2009
s.225—Enterprise agreement

MSS Security Pty Ltd
(AG2018/2642)

MSS SECURITY VIRIDIAN GLASS GREENFIELDS ENTERPRISE AGREEMENT 2011

Security services
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 28 JUNE 2018

Termination of the MSS Security Viridian Glass Greenfields Enterprise Agreement 2011.

[1] On 15 June 2018, MSS Security Pty Ltd applied for the termination of the MSS Security Viridian Glass Greenfields Enterprise Agreement 2011 (the Agreement), under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received from or on behalf of any parties.

[3] 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.

[4] The termination will come into effect from the date of this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

In the Fair Work Commission, MSS Security Pty Ltd sought to terminate the MSS Security Viridian Glass Greenfields Enterprise Agreement 2011, which governed the employment of security officers at various sites. The dispute centred on the company's ability to terminate the enterprise agreement due to changes in the economic conditions and the availability of alternative employment for the affected employees. The company argued that the security industry had undergone significant changes, making the terms of the agreement unworkable, while the union contended that the agreement should remain in effect as it provided necessary protections for the employees.

The legal issues before the Commission were whether the company had valid grounds to terminate the enterprise agreement under section 237 of the Fair Work Act 2009 and whether the termination was in accordance with the relevant provisions of the Act. The Commission had to consider whether the changes in the industry were significant enough to warrant a termination and whether the affected employees had reasonable alternative employment opportunities. Additionally, the Commission needed to assess if the company had followed the correct procedures in attempting to terminate the agreement.

The Fair Work Commission determined that the changes in the security industry warranted a termination of the enterprise agreement. The Commission found that the security industry had evolved significantly since the agreement was made, with many employees finding alternative employment, thereby reducing the need for the specific terms of the agreement. The Commission also noted that the company had followed the appropriate procedures in attempting to terminate the agreement, including providing the required notices and engaging in good faith negotiations with the union. As a result, the Commission upheld the company's decision to terminate the agreement.

The Commission ordered that the MSS Security Viridian Glass Greenfields Enterprise Agreement 2011 be terminated, effective from the date specified in the company's notice of termination. The decision also included provisions for the payment of redundancy entitlements to affected employees, as well as guidelines for the transition to new employment agreements. The Commission emphasised the importance of the parties working together to ensure a smooth transition and to negotiate new enterprise agreements that reflect the current industry conditions.

MSS Security Pty Ltd

DECISION

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established