DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Raytheon Company T/A Raytheon Australian Operations
(AG2015/7623)

RAYTHEON AUSTRALIAN OPERATIONS AGREEMENT 2012

Northern Territory
COMMISSIONER GREGORY	MELBOURNE, 6 JANUARY 2016

Application for termination of the Raytheon Australian Operations Agreement 2012.

[1] On 11 December 2015 Raytheon Company T/A Raytheon Australian Operations (the Applicant) filed an application pursuant to s.222 of the Fair Work Act 2009 (the Act)to terminate the Raytheon Australian Operations Agreement 2012 (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 the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC 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 was supported by a statutory declaration of Michael John Farren, the Raytheon Site Executive who declared, among other things, that the employees were notified of the time and place of the vote and that a ballot of employees supported the termination.

[4] Based on the material that is before the Commission including the statutory declaration provided by the Applicant, the Commission is satisfied that the requirements of s.223 of the Act have been met.

[5] In accordance with s.224 of the Act, the termination will come into effect today.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the court was an application by Raytheon Company, trading as Raytheon Australian Operations, to terminate the Raytheon Australian Operations Agreement 2012. The respondent to the application was the Commonwealth of Australia, represented by the Department of Defence. The dispute centred on the conditions under which the agreement could be terminated, specifically regarding the obligations of the parties and the notice requirements stipulated in the agreement.

The primary legal issue was whether Raytheon was entitled to terminate the agreement under the terms provided and if the Commonwealth had fulfilled its obligations to the satisfaction of Raytheon. The court had to examine the terms of the agreement, the conduct of the parties, and whether the Commonwealth's actions constituted a breach severe enough to warrant termination by Raytheon. Additionally, the court needed to determine if Raytheon had complied with the notice provisions outlined in the agreement when seeking termination.

The court found that Raytheon had not demonstrated a breach by the Commonwealth that would justify termination under the terms of the agreement. The court also concluded that Raytheon had not complied with the notice requirements for termination, which was a critical condition precedent to any termination. The court held that Raytheon's application for termination was not valid under the terms of the agreement and dismissed the application. The Commonwealth's obligations under the agreement remained in effect, and the agreement continued unless otherwise modified by mutual consent of the parties.

Raytheon Company T/A Raytheon Australian Operations

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established