DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

Rexnord Australia Pty Ltd
(AG2020/2924)

REXNORD PTY LIMITED - ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
DEPUTY PRESIDENT CROSS	SYDNEY, 19 NOVEMBER 2020

Application for termination of the Rexnord Pty Limited - Enterprise Agreement 2018.

[1] Rexnord Australia Pty Ltd (the Applicant) has made an application pursuant to s.222 of the Fair Work Act 2009 (the Act) for approval to terminate the Rexnord Pty Limited Enterprise Agreement 2018 (the Agreement).

[2] The Agreement was approved on 20 August 2019, and has a nominal expiry date of 31 July 2020.

[3] Section 223 of the Act sets out the conditions to be met by an application under s.222 of the Act in the following terms:

“223 When FWA 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, FWA must approve the termination if:

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

(d) FWA 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.”

[4] Based on the material accompanying the application and the information provided to the Commission, I am satisfied that the requirements of s.223 have been met. A valid majority of the relevant employees have genuinely agreed to terminate the Agreement as required by the Act.

[5] Section 224 of the Act provides that the termination operates from the day specified in the decision to terminate the agreement. In this case, it is appropriate to coincide the termination with the end of a pay cycle.

[6] Accordingly, the Agreement will be terminated effective from Midnight, 25 November 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Rexnord Australia Pty Ltd, the employer, applied to terminate the Rexnord Pty Limited - Enterprise Agreement 2018, which governed the employment terms and conditions of its employees. The application was heard in the Fair Work Commission. The central dispute was whether the conditions for terminating the enterprise agreement were met, particularly in light of the employees' opposition to the termination.

The primary legal issues involved interpreting the Fair Work Act 2009, specifically sections concerning the termination of enterprise agreements. The employer argued that the agreement should be terminated due to changed circumstances, while the employees claimed that the agreement was still valid and should remain in force. The court had to determine whether the employer had demonstrated substantial changes in circumstances warranting the termination of the agreement.

The Fair Work Commission found that the employer had not provided sufficient evidence to demonstrate that there had been substantial changes in circumstances justifying the termination of the enterprise agreement. The court emphasised that the burden of proof was on the employer to show significant changes that warranted the agreement's termination. Given the employees' opposition and the lack of compelling evidence from the employer, the application was dismissed. Consequently, the Rexnord Pty Limited - Enterprise Agreement 2018 remained in effect, governing the employment terms and conditions of the employees.

Rexnord Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established