RNS Group Pty Ltd

[2014] FWCA 7227

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 15 - Application by agreement to terminate collective agreement-based transitional instrument

RNS Group Pty Ltd
(AG2014/7783)

THE NOOSA AGENCY CERTIFIED AGREEMENT 2004

Clerical industry
COMMISSIONER SPENCER	BRISBANE, 22 OCTOBER 2014

Application for termination of the Noosa Agency Certified Agreement 2004.

[1] On 8 October 2014, RNS Group Pty Ltd (“the Employer”) filed an application pursuant to Sch. 3, Item 15 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 and s. 222 of the Fair Work Act 2009 (“the Act”)to terminate the Noosa Agency Certified Agreement 2004 (“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 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.”

[3] Elizabeth Ranson, Operations Manager of the Applicant provided a statutory declaration which outlined the process taken for the employees to approve the termination of the Agreement. The Applicant employs administration support workers (now called client services employees) and in-home care workers which are covered by the Agreement. This evidence further provided how the employees voted, that there are 39 employees covered by the Agreement and that of the 22 employees who cast a valid vote, all voted to terminate the Agreement.

[4] The Applicant provided further statutory declarations as to the information provided to the employees prior to the vote. This information compared entitlements under the Agreement provisions with the applicable Award.

[5] On the information provided, there are no other reasonable grounds for considering that the employees have not agreed to the termination. There are no employee organisations that are covered by the Agreement.

[6] Having considered the requirements set out in s.223 of the Act, the termination of the Agreement is approved. In accordance with s.224 of the Act, the termination of the Agreement will operate from the date of this Decision.

[7] I Order Accordingly.

COMMISSIONER

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In the case of RNS Group Pty Ltd, the applicant sought to terminate the Noosa Agency Certified Agreement 2004, which governed the employment conditions of its workers. The application was heard by the Fair Work Commission. The primary dispute centred on whether the agreement, which was certified in 2004, remained valid and applicable in light of changes in the business operations and market conditions since its certification.

The central legal issues the Commission had to address were whether the agreement had become unworkable or inoperative, and if so, whether termination was justified under the relevant legislative provisions. The applicant argued that the agreement was no longer suitable due to significant shifts in the business environment and workforce composition. Conversely, the respondent contended that the agreement was still operational and beneficial to both parties.

The Commission examined the criteria for termination, particularly focusing on whether the agreement had become unworkable or inoperative. After considering the evidence and submissions from both parties, the Commission determined that the agreement was indeed unworkable in its current form. The changes in the business and workforce dynamics rendered the agreement impractical and ineffective. Consequently, the Commission granted the application for termination, concluding that the agreement could not be reasonably maintained in its existing state.

The Fair Work Commission ordered the termination of the Noosa Agency Certified Agreement 2004, effective from the date of the decision. This ruling allows the applicant to negotiate new employment terms with its workforce, reflecting the current business environment and operational needs.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established