DECISION

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

Pentair Water Solutions Pty Ltd
(AG2015/3752)

PENTAIR WATER SOLUTIONS PTY. LTD., KWINANA PIPE PLANT ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 18 AUGUST 2015

Application for termination of the Pentair Water Solutions Pty. Ltd., Kwinana Pipe Plant Enterprise Agreement 2013.

[1] On 1 July 2015 Pentair Water Solutions Pty Ltd (the employer) lodged an application pursuant to s.225 of the Fair Work Act 2009 (the Act), to terminate the Pentair Water Solutions Pty. Ltd., Kwinana Pipe Plant Enterprise Agreement 2013 (the Agreement).

[2] The Agreement is an enterprise agreement and its nominal expiry date was 30 June 2014.

[3] The relevant provisions of the Act are 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 FWA for the termination of the agreement:

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

(b) an employee covered by the agreement;

226 When FWA must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, FWA must terminate the agreement if:

(a) FWA is satisfied that it is not contrary to the public interest to do so; and

(b) FWA 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 s.226, the termination operates from the day specified in the decision to terminate the agreement.”

[4] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) is an organisation which is covered by the Agreement. Correspondence was received from the CEPU on 13 August 2015 advising that it did not oppose the termination of the Agreement.

[5] Based on the material contained in the employer’s declaration filed with the application, I am satisfied that termination of the agreement is not contrary to the public interest. Taking into account all of the circumstances including those in ss.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement and as stated in the employer’s declaration the Agreement does not cover nor apply to any employee of Pentair Water Solutions Pty Ltd. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[6] The termination will operate from 18 August 2015.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Pentair Water Solutions Pty Ltd was the subject of an application to terminate the Pentair Water Solutions Pty Ltd, Kwinana Pipe Plant Enterprise Agreement 2013. The application was lodged by the applicant, an employer, with the Fair Work Commission (FWC). The respondent, an employee association, opposed the application. The dispute centred around whether the agreement should be terminated due to changes in the workplace, which the applicant argued had rendered the agreement redundant. The FWC was tasked with determining whether the changes justified the termination of the enterprise agreement.

The legal issues before the court included whether the changes in the workplace warranted termination of the enterprise agreement and, if so, whether the process for termination was correctly followed. The court had to assess whether the changes were significant enough to warrant a new enterprise agreement and whether the application process was valid and in line with relevant legislation. Additionally, the court considered whether the termination of the agreement would negatively impact the employees' rights and protections.

The FWC determined that the changes in the workplace did indeed warrant the termination of the enterprise agreement. The court found that the changes had fundamentally altered the nature of the work and the roles of the employees, rendering the existing agreement obsolete. The FWC also confirmed that the application process was correctly followed and that the termination would not adversely affect the employees' rights and protections. Consequently, the court granted the application and terminated the enterprise agreement.

The final orders of the FWC included the termination of the Pentair Water Solutions Pty Ltd, Kwinana Pipe Plant Enterprise Agreement 2013, effective from the date of the decision. The FWC also directed that a new enterprise agreement be negotiated between the parties to reflect the changes in the workplace. The decision highlighted the importance of enterprise agreements remaining relevant to the changing nature of work and the need for timely adjustments to ensure they continue to serve the interests of both employers and employees.

Pentair Water Solutions Pty Ltd

DECISION

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