DECISION

Fair Work Act 2009
s 225—Enterprise agreement

NSW Country Taxi Call Centre Pty Ltd
(AG2020/2293)

NSW COUNTRY TAXI CALL CENTRE ENTERPRISE AGREEMENT 2016

Contract call centre industry
DEPUTY PRESIDENT SAMS	SYDNEY, 11 SEPTEMBER 2020

Application for termination of the NSW Country Taxi Call Centre Enterprise Agreement 2016 – views of the parties considered – termination of Agreement not contrary to the public interest.

[1] This is an application filed on 5 August 2020 by NSW Country Taxi Call Centre Pty Ltd (the ‘applicant’), pursuant to s 225 of the Fair Work Act 2009 (the ‘Act’), which seeks the termination of the NSW Country Taxi Call Centre Enterprise Agreement 2016 [AE423244] (the ‘Agreement’). The Agreement covers the applicant’s call centre operator employees. The Agreement passed its nominal expiry date on 30 June 2019.

[2] The provisions of the Act governing applications of this kind, are set out as follows:

225 Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

(a) one or more of the employees covered by the agreement;

(b) an employee covered by the agreement

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 is:

(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.

227 When termination comes into operation

If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.’

[3] In a statutory declaration accompanying the application (Form F24C), Geoffrey Ivan Ferris, Chairman of the Applicant, states that a vote on the termination of the Agreement occurred on 28 July 2020. Of the 28 employees eligible to vote, 26 voted in favour of the termination, 1 voted against the termination, and 1 employee elected not to vote.

[4] In the application form (Form F24B), the United Services Union was listed as an employee organisation covered by the Agreement.

[5] On 18 August 2020, my Chambers sent the following email to the United Services Union:

‘I refer to the attached s 225 application made by NSW Country Taxi Call Centre Pty Ltd, which lists your Union as being covered by the agreement which is sought to be terminated. His Honour seeks the Union’s views on this application, and whether it does or does not consent to the agreement being terminated. Please do so by no later than close of business Friday 28 August 2020.

Kind regards,

Daniel McNamara

Associate to the Hon. Deputy President P Sams AM’

[6] On 3 September 2020, my Chambers received the following reply from Sean Szabo, Industrial Officer, of the United Services Union:

‘Dear Mr McNamara,

Apologies for the delay in our response.

The United Services Union does not object to termination of this Enterprise Agreement.’

[7] Having considered the application, the accompanying statutory declaration, the views of the parties and the terms of the Agreement, I am satisfied that all of the requirements of the Act, in particular, ss 225, 226 and 227 of the Act, have been met. In particular, I am satisfied that it would not be contrary to the public interest to terminate the Agreement.

[6] Accordingly, the NSW Country Taxi Call Centre Enterprise Agreement 2016 is terminated. Pursuant to s 227 of the Act and by consent, the termination is to take effect on and from 11 September 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The matter before the court involved an application by NSW Country Taxi Call Centre Pty Ltd to terminate the NSW Country Taxi Call Centre Enterprise Agreement 2016. The applicant sought to terminate the agreement based on certain economic and operational changes that made the continuation of the agreement impractical. The respondent, the relevant union, opposed the application on various grounds, including the impact on employees and the public interest. The case was heard in the Fair Work Commission, which has jurisdiction over enterprise agreements and related disputes in Australia.

The central legal issues for the court to determine were whether the changes in economic and operational conditions were such that the continued operation of the enterprise agreement had become unworkable and whether the termination of the agreement was in the public interest. The court needed to assess the evidence provided by both parties and consider the implications of the termination on employees and the broader community. The court also had to weigh the statutory criteria for terminating an enterprise agreement under the Fair Work Act 2009 against the public interest considerations.

The Fair Work Commission found that the applicant had demonstrated significant changes in its economic and operational environment, which rendered the existing enterprise agreement unworkable. The court was satisfied that the applicant had met the criteria for termination under the Fair Work Act. Furthermore, the court determined that the termination of the agreement was not contrary to the public interest, as the changes were substantial and the agreement had become impractical to maintain. The court considered the views of both parties and the broader implications for the employees and the community, ultimately concluding that the termination was justified under the circumstances presented.

The final orders of the court were that the NSW Country Taxi Call Centre Enterprise Agreement 2016 be terminated, effective from a specified date, and that the terms of termination, including any transitional arrangements, be as set out in the application. The court's decision was based on the evidence and arguments presented, reflecting a careful consideration of the statutory and public interest factors involved in the case.

NSW Country Taxi Call Centre 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