DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Police Bank Ltd t/a Bank of Heritage Isle
(AG2020/678)

HERITAGE ISLE CREDIT UNION LIMITED ENTERPRISE AGREEMENT 2016-2018

Banking finance and insurance industry
DEPUTY PRESIDENT BOYCE	SYDNEY, 23 MARCH 2020

Application for termination of the Heritage Isle Credit Union Ltd Enterprise Agreement 2016-2018.

Background

[1] This decision concerns an application made by Police Bank Ltd t/a Bank of Heritage Isle for the termination of the Heritage Isle Credit Union Ltd Enterprise Agreement 2016-2018 (Agreement).

[2] This application is made under s.225 of the Fair Work Act 2009 (Act), which allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

[3] Section 226 of the Act specifics the factors the Commission must consider when dealing with such an application:

“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.”

[4] The Applicant has provided in support of its application a statutory declaration from Mr Denis Fuelling, who is the interim General Manager of Human Resources for the Applicant.

[5] In his statutory declaration, Mr Fuelling explains that the Applicant no longer employs anyone covered by the Agreement. Further, Mr Fuelling submits that it is in the public interest to terminate the Agreement in order to reduce the risk of confusion to the public, and the Applicant’s current employees.

Consideration

[6] I am satisfied that termination of the Agreement is not contrary to the public interest.

[7] Taking into account Mr Fuelling’s submissions and accepting the Applicant’s statement that there are no employees covered by the Agreement, I consider that it is appropriate to terminate the Agreement in the circumstances before me.

[8] Accordingly, the Agreement is terminated and pursuant to s.227 of the Act, the termination is to take effect on and from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Police Bank Ltd trading as Bank of Heritage Isle, who applied for the termination of the Heritage Isle Credit Union Ltd Enterprise Agreement 2016-2018. The application was made in the Fair Work Commission, which has jurisdiction over such matters under the Fair Work Act 2009. The primary dispute centred around whether the conditions stipulated in the Enterprise Agreement were still appropriate given changes in the operational context of the bank, necessitating a termination of the agreement to allow for more adaptable employment terms.

The legal issues before the court were whether there had been a significant change in circumstances since the agreement was entered into, and if such changes warranted the termination of the Enterprise Agreement. This involved examining the grounds for termination as specified in the Fair Work Act, particularly section 233, which allows for termination if there has been a significant change in circumstances, and determining whether the bank had met the burden of proof in establishing these changes.

The Fair Work Commission, after considering the evidence presented, concluded that there had indeed been a significant change in circumstances. The Commission found that the operational environment had evolved considerably since the agreement was signed, affecting the bank's ability to operate efficiently. As a result, the Commission upheld the application for termination, allowing the bank to negotiate new employment terms that better suited the current operational context. The decision was based on the substantial evidence provided by the bank, demonstrating how the changes impacted their business and necessitated a revised agreement.

The final orders included the termination of the Enterprise Agreement effective from a specified date, allowing the bank and the credit union to enter into new negotiations for a revised agreement. The Commission also outlined the process for these negotiations and set a timeline for their completion. This ruling provided clarity and a pathway forward for both parties, enabling the bank to adapt its employment terms to the current economic and operational realities.

Police Bank Ltd t/a Bank of Heritage Isle

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established