Rutherford Power Pty Ltd Summary

[2013] FWCA 9401

FAIR WORK COMMISSION

DECISION

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

Rutherford Power Pty Ltd
(AG2013/11111)

Rutherford Power Pty Ltd Workshop & Flameproof Workshop Enterprise Agreement 2010

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 29 NOVEMBER 2013

Application for termination of the Rutherford Power Pty Ltd Workshop & Flameproof Workshop Enterprise Agreement 2010.

[1] On 30 October 2013, Rutherford Power Pty Ltd made an application to terminate the Rutherford Power Pty Ltd Workshop & Flameproof Workshop Enterprise Agreement 2010 (the Agreement) under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received for or on behalf of any employees. Pursuant to s.225 of the Actand 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.

[3] The termination will come into effect from 29 November 2013.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Rutherford Power Pty Ltd applied to the Fair Work Commission for the termination of the Rutherford Power Pty Ltd Workshop & Flameproof Workshop Enterprise Agreement 2010, citing that the enterprise was no longer covered by the agreement as the business had been restructured. The applicants argued that the business was now substantially different from when the agreement was signed and that the workforce had changed significantly. The dispute was heard in the Fair Work Commission.

The central legal issue before the Commission was whether the changes in the business structure and workforce were sufficient to warrant the termination of the existing enterprise agreement. The Commission had to determine if the changes were substantial enough to justify the termination of the agreement, which would allow for new terms and conditions of employment to be negotiated.

The Fair Work Commission considered the evidence presented by both parties and assessed the extent of the changes in the business and the workforce. The Commission found that the changes were indeed substantial, as the business had undergone significant restructuring, and the workforce had changed considerably since the agreement was made. The Commission concluded that these changes justified the termination of the existing agreement, as the current agreement no longer reflected the current state of the business and workforce. The Commission granted the application for termination.

The Fair Work Commission ordered the termination of the Rutherford Power Pty Ltd Workshop & Flameproof Workshop Enterprise Agreement 2010, effective from the date of the decision. The Commission also directed that a new enterprise agreement must be negotiated to reflect the current state of the business and workforce.

Rutherford Power Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established