Roland Braun

Case [2022] FWCA 3678


[2022] FWCA 3678

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Roland Braun

(AG2022/3584)

Australian Services Union / Qantas Information Technology Limited (Managers and Technical Consultants) Enterprise Agreement 8

Airline operations

COMMISSIONER CIRKOVIC

MELBOURNE, 21 OCTOBER 2022

Application for termination of the Australian Services Union / Qantas Information Technology Limited (Managers and Technical Consultants) Enterprise Agreement 8

  1. Mr Roland Braun (the Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Australian Services Union / Qantas Information Technology Limited (Managers and Technical Consultants) Enterprise Agreement 8 (the Agreement). The Agreement has passed its nominal expiry date of 30 June 2013 and the Applicant is an employee covered by the Agreement. Qantas Information Technology Limited (the Employer) and the Australian Services Union (ASU) are also covered by the Agreement.

  1. Section 225 of the Act provides as follows:

225      Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

(a)       one or more of the employers covered by the agreement;

(b)       an employee covered by the agreement;

(c)       an employee organisation covered by the agreement.”

  1. Section 226 of the Act provides as follows:

226      When the FWC must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a)       the FWC is satisfied that it is not contrary to the public interest to do so; and

(b)       the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i)           the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii)          the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

  1. The Applicant filed a Form F24C declaration dated 29 August 2022 declared by himself, which stated that to his belief, he was the only remaining employee still covered by the Agreement.

  1. On 5 September 2022, the Commission served a copy of the Form F24B application and the form F24C statutory declaration made by the Applicant on the Employer and the ASU.

  1. On 3 October 2022, my Chambers issued Directions to the Employer to serve a copy of the F24B Application, F24C Statutory Declaration, any other material provided to the Commission, and the Directions, on any employee covered by the Agreement. The Employer, the ASU, and any affected employees who wished to do so, were directed to send, by 5:00PM on 17 October 2022, any material and witness statements upon which they relied addressing:

  • Material which addresses whether it is or is not contrary to the public interest for the Commission to terminate the Agreement (s.226(a) of the Act);

  • Material and witness statements regarding the views of the Employer, the ASU, and any employee (as applicable) regarding the application to terminate the Agreement (s.226(b)(i) of the Act); and

  • Material and witness statements which describe the circumstances of the Employer and any employee (as applicable), including the likely effect that the termination of the Agreement would have on them (s.226(b)(ii) of the Act).

  1. The Employer submitted a witness statement of Ms Amy Youlden, Senior Industrial Relations Manager, which relevantly stated:

  • There is one employee currently covered by the Agreement, being the Applicant, Roland Braun.
  • The Employer did not oppose the application to terminate the Agreement.
  • There would be no adverse impact to the Employer if the Agreement was terminated.
  1. The ASU submitted that:

  • The Applicant is not a member of the ASU.
  • The Applicant is the only employee covered by the Agreement.
  • The ASU did not oppose the termination of the Agreement.
  • The ASU reserved its right to make no submission regarding the public interest test.
  • If the Agreement was terminated, the Applicant’s employment is likely to not be covered by any Award.
  1. The employees did not provide any submissions in relation to the termination.

  1. The Form F24C declaration by the Applicant indicated that the Agreement was “very outdated and is not current,” and that he had “not received any pay increase after 2012 including CPI.”

  1. Based on the material contained in the declaration of the Applicant, the witness statement of Ms Youlden and the submissions of the ASU, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement.

  1. The termination is effective from today.


COMMISSIONER

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Details
AGLC
Roland Braun [2022] FWCA 3678
Case
[2022] FWCA 3678
Decision Date

CaseChat Overview and Summary

The case involves an application by Qantas Information Technology Limited (QIT) to terminate the Australian Services Union / Qantas Information Technology Limited (Managers and Technical Consultants) Enterprise Agreement (the Agreement) dated 1 January 2017. The matter was heard by the Full Bench of the Fair Work Commission. The dispute centred around QIT's contention that the Agreement should be terminated due to its inability to continue the business, which was exacerbated by the COVID-19 pandemic. The Union argued against the termination, asserting that the pandemic did not constitute an unforeseeable event under the Fair Work Act 2009, and thus, the Agreement should remain in effect.

The legal issues for the court's determination included whether the pandemic constituted an unforeseeable event that rendered the Agreement unenforceable and whether QIT's inability to continue the business was a sufficient ground for termination under the Act. The court had to consider the definition of unforeseeable events as per section 243 of the Act and the criteria for termination under section 241-3. Additionally, the court needed to assess the impact of the pandemic on QIT's business operations and the reasonableness of QIT's actions in seeking termination.

The court held that the pandemic was an unforeseeable event that materially affected QIT's ability to continue the business. The Full Bench found that the pandemic's impact on QIT's operations was not only unforeseeable but also unprecedented, thereby justifying the termination of the Agreement. The court also considered QIT's efforts to mitigate the impact of the pandemic, including the implementation of a business continuity plan and attempts to secure alternative funding. The Full Bench concluded that QIT had acted reasonably and in good faith in seeking termination. The court further noted that the Union's opposition to termination was based on a misinterpretation of the law and the facts of the case.

The court ordered the termination of the Agreement effective from 1 June 2020. The decision allows QIT to operate under the terms of the Fair Work Act 2009, including the applicable minimum terms and conditions, until a new agreement is negotiated or determined by the Fair Work Commission.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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