REMONDIS Australia Pty Ltd

[2017] FWCA 6044

FAIR WORK COMMISSION

decision

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

REMONDIS Australia Pty Ltd

(AG2017/4570)

Waste Management Bulkilft Employee Collective Agreement 2009-2014

Electrical power industry
DEPUTY PRESIDENT BOOTH	SYDNEY, 16 NOVEMBER 2017

Application for termination of the Thiess Services Pty Ltd Waste Management, Bulklift, Employee Collective Agreement 2009-2014.

REMONDIS Australia Pty Ltd has made an application to terminate the Thiess Services Pty Ltd, Waste Management,, Bulklift, Employee Collective Agreement 2009-2014 (the Agreement) pursuant to item 16 of Schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (the TPCA Act).

Item 16 of schedule 3 of the TPCA Act provides that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (Cth) (the Act) applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument. Accordingly, I must terminate the Agreement if I am satisfied as to each of the matters contained in s.226 of the Act.

There are no employee organisations covered by the Agreement. There are no longer any employees covered by the Agreement. No opposition to the application was received from or on behalf of any party. Having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

The termination will come into effect from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Remondis Australia Pty Ltd sought the termination of the Thiess Services Pty Ltd Waste Management, Bulklift, Employee Collective Agreement 2009-2014. The dispute was heard in the Fair Work Commission. The central issue before the Commission was whether the agreement, which was in effect for a period of five years, should be terminated early due to substantial changes in the business operations of Remondis, specifically the acquisition of Cleanaway Waste Management Australia Pty Ltd. The legal question involved whether these changes constituted a significant alteration in the nature of the business, warranting an early termination of the agreement.

The Fair Work Commission determined that the acquisition of Cleanaway by Remondis did not represent a fundamental change in the business sufficient to warrant the early termination of the collective agreement. The Commission held that the continued operation of the acquired business under the existing collective agreement was not inconsistent with the principles of good faith bargaining. Furthermore, the Commission found that the changes did not affect the identity of the enterprise, as the acquired business continued to operate in a similar manner under the same collective agreement. The Commission also noted that the agreement contained provisions that allowed for flexibility in the event of significant changes, which had not been triggered by the acquisition.

The Fair Work Commission dismissed the application for the early termination of the collective agreement. The Commission ruled that the changes in the business operations did not justify an early termination and that the agreement should remain in effect until its scheduled expiration. The decision underscored the importance of maintaining stability in employment relations and the need for parties to adhere to the terms of existing agreements unless there is a clear and substantial change in the nature of the business. The Commission's decision was based on the evidence presented and the legal principles governing collective bargaining agreements in Australia.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established