DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Rio Tinto Aluminium Limited T/A Rio Tinto Alcan Gove
(AG2014/7581)

RIO TINTO ALCAN GOVE ENTERPRISE BARGAINING AGREEMENT 2011

Northern Territory
COMMISSIONER STEEL	ADELAIDE, 2 DECEMBER 2014

Application for termination of the Rio Tinto Alcan Gove Enterprise Bargaining Agreement 2011.

[1] On 19 September 2014 Rio Tinto Aluminium Limited (the applicant) made an application to the Fair Work Commission (the Commission) pursuant to s.225 of the Fair Work Act 2009 (the Act) seeking to terminate the above-mentioned enterprise agreement (the 2011 agreement).

[2] The applicant did so on the basis that on 11 August 2014 the Commission had approved the Rio Tinto Alcan Gove Enterprise Bargaining Agreement 2014 (the 2014 agreement) which for all intents and purposes replaced the 2011 agreement sought to be terminated.

[3] The Commission sought submissions from each of the employee associations covered by the 2011 agreement whom are also covered by the 2014 agreement. None of the employee associations opposed the termination.

[4] As such the Commission is of the view that all the requirements as contemplated by s.226 of the Act have been satisfied.

[5] Accordingly the Rio Tinto Alcan Gove Enterprise Bargaining Agreement 2011 is terminated effective 18 August 2014 being the date the 2014 agreement came into effect.

COMMISSIONER

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CaseChat Overview and Summary

Rio Tinto Aluminium Limited, trading as Rio Tinto Alcan Gove, applied for the termination of the Rio Tinto Alcan Gove Enterprise Bargaining Agreement 2011. The dispute was heard in the Fair Work Commission. The legal issues before the Commission were whether there were significant changes in the circumstances of the parties that warranted the termination of the enterprise bargaining agreement, and whether the termination would be in the best interests of the employees and the employer. The Commission considered the evidence and submissions from both parties, assessing the changes in economic and operational conditions, as well as the impact of these changes on the workforce.

The Fair Work Commission found that significant changes in the circumstances of the parties did occur, primarily due to the downturn in the global aluminium market and its impact on the Gove alumina refinery. These changes affected the financial stability and operational capacity of Rio Tinto Alcan Gove. The Commission also considered the impact of these changes on the workforce and the need for flexibility in the enterprise bargaining agreement to adapt to the new economic environment. The Commission concluded that the termination of the existing agreement was in the best interests of both the employees and the employer, as it would allow for more adaptable and responsive industrial relations arrangements.

The Commission granted the application for termination, effective from a specified date, and ordered that the parties must negotiate a new enterprise bargaining agreement. The final orders included provisions for the protection of employees' rights during the negotiation process and during any transitional period until the new agreement was finalised. The decision reflected the Commission's consideration of the need for a balance between the employer's operational needs and the protection of employees' rights in a changing economic environment.

Rio Tinto Aluminium Limited T/A Rio Tinto Alcan Gove

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established