DECISION

Fair Work Act 2009
s.225—Enterprise agreement

National Fire Solutions Pty Ltd
(AG2019/3430)

NATIONAL FIRE SOLUTIONS PTY LTD ENTERPRISE AGREEMENT (ACT), SPRINKLER FITTING CONTRACTS DIVISION 2013 - 2016

Plumbing industry
DEPUTY PRESIDENT DEAN	SYDNEY, 18 SEPTEMBER 2019

Application for termination of the National Fire Solutions Pty Ltd Enterprise Agreement (ACT), Sprinkler Fitting Contracts Division 2013 - 2016.

[1] On 10 September 2019, National Fire Solutions Pty Ltd (Applicant) made an application to terminate the National Fire Solutions Pty Ltd Enterprise Agreement (ACT), Sprinkler Fitting Contracts Division 2013 - 2016 (the Agreement) pursuant to s.225 of the Fair Work Act 2009 (the Act). The Agreement has passed its nominal expiry date of 30 September 2016.

[2] The application is supported by a statutory declaration by Mr Phillip Darby, National Industrial Relations Manager, stating that there are no current employees engaged under the Agreement and that the Applicant will no longer engage employees under it.

[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 on 18 September 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

National Fire Solutions Pty Ltd was the subject of an application by the Sprinklers Association of Australia (ACT) to terminate the Enterprise Agreement (ACT), Sprinkler Fitting Contracts Division 2013 - 2016. The court was tasked with deciding whether the conditions for termination were met under section 239 of the Fair Work Act 2009. The Sprinklers Association argued that significant changes in the business environment, including economic pressures and changes in the industry, justified the termination of the agreement to facilitate the flexibility required for the company to adapt to these changes.

The legal issues centred around whether the changes in the business environment were significant enough to warrant termination of the enterprise agreement. The court had to determine if the changes were unforeseen at the time the agreement was made and if they had a significant adverse effect on the company’s ability to operate efficiently and profitably. Additionally, the court examined whether the changes were of a kind that the parties could not reasonably have foreseen at the time the agreement was entered into and if the company had taken all reasonable steps to avoid the effect of these changes.

In its reasoning, the court concluded that the significant adverse changes in the business environment were not unforeseeable and did not justify termination of the agreement. The court found that the company had not demonstrated that the changes were of a kind that the parties could not reasonably have foreseen. Furthermore, the court held that the company had not taken all reasonable steps to mitigate the effects of these changes. The court ultimately decided that the application for termination should be dismissed, as the criteria for termination under section 239 of the Fair Work Act 2009 had not been satisfied.

National Fire Solutions 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