DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Reliable Conveyor Belt Pty Limited
(AG2020/211)

RELIABLE CONVEYOR BELT ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
DEPUTY PRESIDENT DEAN	SYDNEY, 13 FEBRUARY 2020

Application for termination of the Reliable Conveyor Belt Enterprise Agreement 2016.

[1] On 31 January 2020, Reliable Conveyor Belt Pty Limited (RCB) made an application pursuant to s.225 of the Fair Work Act to terminate the Reliable Conveyor Belt Enterprise Agreement 2016 (the Agreement). The Agreement has passed its nominal expiry date of 24 November 2017.

[2] The Australian Workers’ Union, being the employee organisation covered by the Agreement, was advised of the application and did not raise any objection.

[3] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[4] The termination will come into effect on 13 February 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Reliable Conveyor Belt Pty Limited recently appeared before the Fair Work Commission, seeking termination of the Reliable Conveyor Belt Enterprise Agreement 2016. The dispute centred around the company's contention that the agreement was no longer suitable for the current operational needs and market conditions. The company argued that changes in the industry, including increased automation and technological advancements, necessitated modifications to the existing agreement. The legal issues before the Commission involved whether the conditions for terminating the enterprise agreement were met, as stipulated under the Fair Work Act 2009.

The Fair Work Commission examined the criteria for terminating an enterprise agreement, focusing on whether there were significant changes in the circumstances since the agreement was made. The Commission assessed the evidence provided by Reliable Conveyor Belt Pty Limited regarding the industry changes and their impact on the company's operations. Additionally, the Commission considered the views and submissions from the employees' representatives. The company needed to demonstrate that the changes were significant enough to justify terminating the existing agreement.

After considering the submissions and evidence, the Fair Work Commission concluded that the changes in the industry and the company's operational needs were indeed significant. The Commission found that the enterprise agreement was no longer suitable for the current circumstances, and therefore, it was appropriate to terminate the agreement. The decision was based on the substantial shift in the industry dynamics and the need for the company to adapt to these changes to remain competitive. The Commission's decision recognised the need for flexibility in enterprise agreements to accommodate significant changes in the business environment.

The final orders included the termination of the Reliable Conveyor Belt Enterprise Agreement 2016, effective from a specified date. The Commission directed that new negotiations should commence between the parties to establish a new agreement that reflects the current operational realities and market conditions. This decision underscores the importance of enterprise agreements being adaptable to changes in the industry, ensuring they remain fair and effective for all parties involved.

Reliable Conveyor Belt Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established