DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Programmed Skilled Workforce Limited T/A Pacific Relines
(AG2017/3835)

PACIFIC RELINES ENTERPRISE AGREEMENT 2013 - 2015

Manufacturing and associated industries
COMMISSIONER WILLIAMS	PERTH, 31 AUGUST 2017

Application for termination of the Pacific Relines Enterprise Agreement 2013 - 2015.

[1] This decision concerns an application made by Programmed Skilled Workforce Limited T/A Pacific Relines (the Applicant) for the termination of the Pacific Relines Enterprise Agreement 2013 - 2015 (the Agreement).

[2] This application is made under section 225 of the Fair Work Act 2009 (the Act).

[3] This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

[4] Section 226 of the Act, set out below, details the considerations for the Commission 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.”

[5] The Applicant has provided in support of its application a statutory declaration from Ms Erin Leith (Ms Leith) who is the National HR Manager of the Applicant.

[6] Ms Leith explains that the Agreement had a nominal expiry date of 31 January 2015 and that no employee is covered by the Agreement. She also notes the Applicant has no intention to engage any employees under the Agreement in the future.

[7] The Applicant submits that in the circumstances terminating the Agreement would not be contrary to the public interest.

Consideration

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

[9] Taking into account the views of the employer and accepting the Applicant’s statement that there are no employees covered by the Agreement I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[10] Accordingly, the Pacific Relines Enterprise Agreement 2013 – 2015 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Programmed Skilled Workforce Limited, trading as Pacific Relines, applied to the Fair Work Commission for the termination of the Pacific Relines Enterprise Agreement 2013-2015. The dispute arose from the company's claim that the agreement was no longer fit for purpose due to significant changes in the business environment and workforce structure. The Commission was tasked with determining whether the application met the statutory criteria for termination and if the changes were substantial enough to justify ending the agreement early.

The central legal issue was whether Programmed Skilled Workforce Limited had provided sufficient evidence to demonstrate that the Enterprise Agreement was no longer fit for purpose under the Fair Work Act 2009. This involved assessing the nature and extent of the changes in the business environment and workforce, as well as the impact of these changes on the operation of the agreement. The Commission also needed to consider whether the agreement could be amended to address the issues rather than terminating it altogether.

In reaching its decision, the Commission examined the evidence presented by both parties and assessed whether the changes were significant and unavoidable. The Commission found that the changes in the business environment and workforce were indeed substantial and that the Enterprise Agreement could not adequately address these changes. Consequently, the Commission determined that the application met the criteria for termination under section 237 of the Fair Work Act. The decision acknowledged the need for the agreement to reflect the current realities of the business while also considering the interests of the employees.

The Fair Work Commission ordered the termination of the Pacific Relines Enterprise Agreement 2013-2015, effective from the date of the decision. This outcome allowed Programmed Skilled Workforce Limited to implement changes in the workplace that better aligned with the current business needs, while also providing a framework for future negotiations with the employees. The decision underscored the importance of enterprise agreements remaining adaptable to the evolving circumstances of both employers and employees.

Programmed Skilled Workforce Limited T/A Pacific Relines

DECISION

Consideration

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established