DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Ranger Drilling Services Pty Ltd ATF Izett Family Trust T/A Ranger Drilling
(AG2017/1891)

RANGER DRILLING ENTERPRISE AGREEMENT 2013

Mining industry
DEPUTY PRESIDENT BULL	PERTH, 26 JUNE 2017

Application for termination of the Ranger Drilling Enterprise Agreement 2013.

[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 2013 (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 [PR594081] 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

The applicants, Ranger Drilling Services Pty Ltd ATF Izett Family Trust T/A Ranger Drilling, sought to terminate the Ranger Drilling Enterprise Agreement 2013. The applicants argued that the agreement had become inoperative due to changes in the business environment and the bargaining power of the parties. The applicants sought an order to terminate the agreement, which would allow them to pay their employees the applicable minimum award rates. The Fair Work Commission heard the application and was required to decide whether the agreement had indeed become inoperative and whether termination was appropriate.

The Commission considered the evidence presented by both parties and assessed the changes in the business environment and the bargaining power of the parties. The Commission found that the agreement had become inoperative due to changes in the business environment, including a significant reduction in the demand for drilling services and the entry of new competitors into the market. The Commission also found that the applicants had lost bargaining power and were no longer able to negotiate with the employees on terms and conditions of employment. The Commission concluded that the agreement had become inoperative and that termination was appropriate.

The Fair Work Commission ordered the termination of the Ranger Drilling Enterprise Agreement 2013. The termination took effect from the date of the decision and the employees became entitled to the applicable minimum award rates. The decision provides guidance to employers and employees on the factors that the Commission considers when deciding whether an enterprise agreement has become inoperative and whether termination is appropriate. The decision also highlights the importance of employers and employees adapting to changes in the business environment and maintaining their bargaining power.

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