DECISION

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

Pan Process Pty Ltd
(AG2018/1383)

PAN PROCESS PTY LTD & CEPU ELECTRICAL DIVISION QUEENSLAND ENTERPRISE AGREEMENT 2012 - 2015

Electrical contracting industry
COMMISSIONER HUNT	BRISBANE, 21 MAY 2018

Application for termination of the Pan Process Pty Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2012 - 2015.

[1] On 9 April 2018 Pan Process Pty Ltd (the Employer) made an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Pan Process Pty Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2012 - 2015 (the Agreement). The Agreement has passed its nominal expiry date.

[2] The application was supported by a statutory declaration from Ms Pan Naidu, HR/Payroll Administrator which declared, amongst other things, that there are no employees who are covered by the Agreement.

[3] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) is an employee organisation covered by the Agreement. My Associate wrote to the CEPU to seek its views in relation to the application. The CEPU does not oppose the application.

[4] Section 226 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.225 of the Act. Section 226 of the Act provides as follows:

“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.”

Consideration

[5] Based on the material contained in the statutory declaration filed with the application, in consideration of s.226(a), I am satisfied that the termination of the Agreement is not contrary to the public interest. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement.

[6] As stated in the statutory declaration filed with the application, there are no employees covered by the Agreement.

[7] In consideration of the material before me relevant to s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement.

[8] In accordance with s.226, I must terminate the Agreement. The application to terminate the Agreement is approved.

[9] The termination will take effect from today, 21 May 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The applicant, Pan Process Pty Ltd, applied to the Fair Work Commission for the termination of the Pan Process Pty Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2012 - 2015. The dispute centred on the application's assertion that the agreement had become redundant and was no longer suitable for the parties' circumstances, given significant changes in the business environment and workforce composition.

The legal issues before the court involved determining whether the changes in the business environment and workforce composition were substantial enough to warrant the termination of the enterprise agreement. The applicant argued that the changes necessitated a renegotiation of the terms, while the respondent contended that the existing agreement should remain in force.

The Fair Work Commission found that the changes in the business environment and workforce composition were indeed significant. The Commission concluded that the enterprise agreement was no longer suitable for the parties' circumstances. It noted that the changes had resulted in a substantial shift in the nature of the work and the workforce, which the existing agreement did not adequately address. Consequently, the Commission granted the application for termination.

The Fair Work Commission terminated the Pan Process Pty Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2012 - 2015, effective from the date of the decision. The Commission ordered that the termination would be effective from the date of the decision, allowing the parties to negotiate a new agreement that better reflects the current circumstances.

Pan Process 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