| [2023] FWCA 2451 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.222—Enterprise agreement
Saferoads Pty Ltd T/A Saferoads
(AG2023/2428)
SAFEROADS PTY LTD (MANUFACTURING) ENTERPRISE AGREEMENT 2014
| Manufacturing and associated industries | |
| DEPUTY PRESIDENT O’NEILL | MELBOURNE, 7 AUGUST 2023 |
Application for termination of the Saferoads Pty Ltd (Manufacturing) Enterprise Agreement 2014
On 19 July 2023, Saferoads Pty Ltd applied to terminate the Saferoads Pty Ltd (Manufacturing) Enterprise Agreement 2014 (the Agreement) pursuant to section 222 of the Fair Work Act 2009 (Cth) (the Act).
The Agreement has a nominal expiry date of 28 August 2016.
Background
The Applicant is the sole employer covered by the Agreement. The Agreement covers employees of Saferoads Pty Ltd engaged in the manufacture and fabrication of safety road barriers, street lights, bollards, associated metals fabrication work, warehousing and transport and in any classifications C14 to C10 inclusive, as set out in the Manufacturing and Associated Industries and Occupations Award 2020.
The application was supported by a declaration of Mr Darren John Hotchkin, Chief Executive Officer, dated 18 July 2023.
There are no registered organisations covered by the Agreement.
Consideration
Mr Hotchkin declares that two meetings were held with employees on 2 March 2023 and 17 April 2023, to consult on the proposed termination of the Agreement and to obtain feedback. A letter to employees explaining the Applicant’s reasons for proposing to terminate the Agreement was also forwarded to employees on 15 June 2023. A copy of this document was lodged with the application.
I am satisfied that the Applicant, before requesting the employees approve the termination of the Agreement, took all reasonable steps to notify the employees of the voting method and time and place at which the vote would occur. Of the 8 employees covered by the Agreement, 8 cast a valid vote and 8 employees voted to approve the termination of the Agreement.
I am also satisfied that the Applicant gave the employees a reasonable opportunity to decide whether they wanted to approve the proposed termination. Employees had the opportunity to attend meetings to consult on the proposed termination, including to ask any questions and provide feedback.
I am satisfied that the application was made within 14 days after the termination was agreed to.
I am satisfied that the termination was agreed to by the relevant employees, and I am satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination.
I am satisfied that the requirements of s.223 of the Act have been met, and in all the circumstances, I consider that it is appropriate to terminate the Agreement.
The Agreement is terminated effective 7 August 2023.
DEPUTY PRESIDENT
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- AGLC
- Saferoads Pty Ltd T/A Saferoads [2023] FWCA 2451
- Case
- [2023] FWCA 2451
- Decision Date
CaseChat Overview and Summary
The legal issues before the Commission involved whether the changes in the industry were so substantial that they rendered the existing agreement obsolete and whether the agreement was no longer fair and reasonable. The Commission had to consider the criteria set out in the Fair Work Act 2009 for terminating an enterprise agreement, particularly focusing on the requirements that the agreement must no longer be fair and reasonable due to changes in circumstances. Saferoads had to demonstrate that the changes were significant and that the existing agreement could no longer be considered fair and reasonable.
The Fair Work Commission, after reviewing the evidence presented, found that the changes in the manufacturing industry were indeed substantial and warranted the termination of the existing agreement. The Commission determined that the agreement could no longer be considered fair and reasonable in light of these changes. Consequently, the application for termination was successful. The Commission took into account the need to balance the interests of both the employer and the employees, ensuring that any new agreement would be fair and reasonable for all parties involved. The decision was made in accordance with the statutory criteria for terminating an enterprise agreement under the Fair Work Act.
Orders
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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