| [2018] FWC 3945 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Item 16 Sch. 3—Termination of transitional instrument
Programmed Skilled Workforce Limited
(AG2018/2802)
Skilled Engineering Ltd - ETU Enterprise Agreement 2003 - 2005
(ODN AG2003/4859) [AG828887]
Electrical contracting industry | |
DEPUTY PRESIDENT GOSTENCNIK | MELBOURNE, 3 JULY 2018 |
Application for termination of the Skilled Engineering Ltd - ETU Enterprise Agreement 2003 - 2005.
[1] On 25 June 2018, Programmed Skilled Workforce Limited (Applicant) applied, pursuant to Schedule 3, Item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Transitional Act) to terminate the Skilled Engineering Ltd - ETU Enterprise Agreement 2003 - 2005 (Agreement). The Agreement covers the Applicant, the employees of the Applicant and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) as specified in clause 2 of the Agreement. The Agreement has passed its nominal expiry date.
[2] The Agreement is a collective agreement-based transitional instrument to which Items
15 and 16 of Schedule 3 of the Fair Work(Transitional Provisions and Consequential Amendments) Act 2009 (Transitional Act) apply. The effect of Items 15 and 16 of
Schedule 3 of the Transitional Act is that the termination of agreement provisions found in
Subdivisions C and D of Division 7 of the Act apply to the Agreement as though a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.
[3] Section 225 of the Act provides:
“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 employers covered by the agreement;
(b) an employee covered by the agreement;
(c) an employee organisation covered by the agreement.”
[4] Section 226 of the Act provides:
“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.”
[5] Ms C Winstanley, Human Resource Advisor of the Applicant, provided a statutory declaration dated 25 June 2018, declaring that Programmed Skilled Workforce Limited is the employer covered by the Agreement. The statutory declaration states that the Agreement nominally expired on 31 October 2005 and that the Agreement has since been replaced by another enterprise agreement. It is further declared that the termination will have no effect on the parties to the Agreement.
[6] The CEPU is an organisation which is covered by the Agreement. In correspondence to my chambers of 3 July 2018, the CEPU advised that it had no objection to the termination of the Agreement.
[7] Based on the material contained in the statutory declaration of the Applicant, 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. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.
[8] The termination will operate from 3 July 2018.
[9] An Order giving effect to this decision is separately issued in PR608696.
DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer
<PR608695>
- AGLC
- Programmed Skilled Workforce Limited [2018] FWC 3945
- Case
- [2018] FWC 3945
- Decision Date
CaseChat Overview and Summary
The central legal issue before the Fair Work Commission was whether the applicant had provided sufficient grounds for the termination of the enterprise agreement. The Commission considered whether the changes in the applicant's business operations and workforce composition warranted a departure from the existing agreement. The Commission also examined the procedural fairness of the application process and whether the applicant had acted in good faith. The Fair Work Commission's decision hinged on interpreting the relevant provisions of the Fair Work Act 2009 and applying them to the specific circumstances of the case.
The Fair Work Commission found that the applicant had not provided sufficient grounds for terminating the enterprise agreement. The Commission determined that the changes in the applicant's business operations and workforce composition did not warrant a departure from the existing agreement. The Commission also found that the applicant had not acted in good faith, as it had not adequately considered the potential impact of the termination on its employees. Consequently, the application for termination was dismissed. The Commission emphasised the importance of fair and transparent decision-making in the context of enterprise agreements and highlighted the need for applicants to provide compelling evidence to support their applications for termination.
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