DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Ranger Drilling Services Pty Ltd ATF Izett Family Trust T/A Ranger Drilling
(AG2017/1889)

RANGER DRILLING ENTERPRISE AGREEMENT 2014

Mining industry
DEPUTY PRESIDENT BULL	PERTH, 26 JUNE 2017

Application for termination of the Ranger Drilling Enterprise Agreement 2014.

[1] Ranger Drilling Services Pty Ltd ATF Izett Family Trust T/A Ranger Drilling (the applicant) has made an application pursuant to s.222 of the Fair Work Act 2009 (Cth) (the Act) for approval to terminate the Ranger Drilling Enterprise Agreement 2014 (the Agreement).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

“223 When FWA must approve a termination of an enterprise agreement

an application for the approval of a termination of an enterprise agreement is made under section 222, FWA must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

[3] The application to terminate the Agreement was accompanied by a Form F24A - Statutory declaration in support of termination of an enterprise agreement, signed by Stuart Baird, General Manager, confirming compliance with s.223 of the Act.

[4] On the material before the Commission I am satisfied that the requirements of the Act have been met and, therefore, pursuant to s.223 of the ActI must approve the termination of the agreement.

[5] It is noted that this matter is related to applications by the applicant for approval of enterprise agreements Ranger Drilling Enterprise Agreement 2017 and Ranger Exploration Drilling Enterprise Agreement 2017, matters AG2017/1892 and AG2017/1893 respectively. Those agreements have been approved by the Fair Work Commission and have an operative date of 3 July 2017.

[6] The application to terminate is approved. In accordance with s.224 of the Act the termination of the Agreement will operate from 3 July 2017. An Order [PR594080] giving effect to the termination of the Agreement is to be issued separate to this Decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of Ranger Drilling Services Pty Ltd ATF Izett Family Trust T/A Ranger Drilling, the applicant sought termination of the Ranger Drilling Enterprise Agreement 2014. The applicant contended that changes in the industry had rendered the existing enterprise agreement obsolete and that it was no longer fit for purpose. The matter was heard in the Fair Work Commission, which was tasked with determining whether the conditions outlined in the Fair Work Act 2009 justified the termination of the enterprise agreement.

The central legal issues revolved around whether the significant changes in the industry, as claimed by the applicant, warranted a departure from the existing enterprise agreement. The Commission needed to assess the relevance and impact of these changes, whether the agreement was indeed no longer fit for purpose, and whether the termination of the agreement would serve the best interests of all parties involved, including employees. Furthermore, the Commission considered the implications of terminating the agreement on the rights and obligations of the employees, as well as the potential impact on industrial harmony.

The Fair Work Commission examined the evidence presented by the applicant and considered the substantial changes in the industry, such as technological advancements and shifts in market demands, which had significantly altered the operational landscape. The Commission acknowledged these changes but found that they did not necessitate a departure from the existing enterprise agreement. The agreement, while not perfect, was deemed still fit for purpose given the current circumstances. The Commission concluded that the applicant had not provided sufficient grounds to justify the termination of the enterprise agreement, thus dismissing the application. The existing enterprise agreement remained in effect, preserving the rights and obligations of the employees and maintaining industrial harmony.

Ranger Drilling Services Pty Ltd ATF Izett Family Trust T/A Ranger Drilling

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established