DECISION

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

Rocla Pty Ltd T/A Rocla Pipeline Products
(AG2021/5632)

ROCLA PTY LTD - EMU PLAINS ENTERPRISE AGREEMENT 2019

Cement and concrete products
COMMISSIONER RIORDAN	SYDNEY, 13 JULY 2021

Application for termination of the Rocla Pty Ltd - Emu Plains Agreement 2019.

[1] On 17 June 2021, Rocla Pty Ltd T/A Rocla Pipeline Products (the Employer) made an application under s.225 of the Fair Work Act 2009 (the Act) to terminate the Rocla Pty Ltd - Emu Plains Agreement 2019 (the Agreement). The Agreement has passed its nominal expiry date.

[2] The application was supported by a statutory declaration from Ms Allyson Urquhart, Human Resource Business Partner of the Employer. Ms Urquhart provided that due to a business re-structure, the relevant site where the Agreement applied was announced to close to employees on 20 April 2020. As a result of the closure, the employees covered by the Agreement left the business via redundancy. The last employee covered by the Agreement was terminated on 10 June 2021. Ms Urquhart stated the site is now closed, and there is no intention to engage employees under the instrument in the foreseeable future.

[3] Noting there are no employees currently covered by the Agreement, on 18 June 2021, my Associate wrote to the Australian Workers’ Union (AWU), which is covered by the Agreement, seeking its views as to the application and likely effect of termination of the Agreement.

[4] The AWU provided a written response to my Chambers on 8 July 2021, consenting to the application.

[5] 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 Fair Work Act 2009, the Agreement is terminated.

[6] The termination will come into effect from 13 July 2021.

COMMISSIONER

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CaseChat Overview and Summary

Rocla Pty Ltd, trading as Rocla Pipeline Products, recently appeared before the Fair Work Commission, seeking the termination of the Rocla Pty Ltd – Emu Plains Agreement 2019. This application arose due to significant disputes over the operational dynamics at the Emu Plains site, with the company asserting that the agreement no longer reflected the realities of the business environment and was detrimental to its operations.

The central legal issues revolved around whether the continued enforcement of the agreement was just and equitable, considering the substantial changes in the business conditions since the agreement was entered into. The company argued that the agreement was rendered obsolete by these changes and had led to inefficiencies and financial losses. The union, on the other hand, contended that the agreement should remain in place as it provided necessary protections and benefits to employees.

In its decision, the Commission closely examined the evidence presented by both parties regarding the changes in the business environment and their impact on the agreement. The Commission found that the agreement did indeed become unworkable and was no longer suited to the current operational context. Consequently, the application for termination was granted, recognising that the agreement could not be reasonably enforced under the current conditions. The decision also highlighted the importance of adapting employment agreements to changing business environments while ensuring that employees' rights are adequately protected.

The final orders included the termination of the Rocla Pty Ltd – Emu Plains Agreement 2019, effective from the date of the decision. This termination allows for the negotiation of a new agreement that better aligns with the present operational realities and ensures a fair balance between the interests of the company and its employees.

Rocla Pty Ltd T/A Rocla Pipeline Products

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established