DECISION

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

Saunders International Limited
(AG2017/5378)

SAUNDERS INTERNATIONAL LIMITED BP REFINERY (KWINANA) ENTERPRISE AGREEMENT 2013

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 15 NOVEMBER 2017

Application for termination of the Saunders International Limited BP Refinery (Kwinana) Enterprise Agreement 2013.

[1] On 7 November 2017, Saunders International Limited made an application to terminate the Saunders International Limited BP Refinery (Kwinana) Enterprise Agreement 2013 (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 15 November 2017.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, Saunders International Limited sought to terminate the Saunders International Limited BP Refinery (Kwinana) Enterprise Agreement 2013. The applicant argued that the agreement was no longer appropriate due to changes in the operational landscape and the need for flexibility in workforce management. The respondent, BP Refinery (Kwinana) Pty Ltd, opposed the termination, contending that the agreement was still relevant and beneficial to the employees it covered.

The legal issues before the Commission centred on whether the changes cited by the applicant were significant enough to warrant the termination of the enterprise agreement. The Commission needed to determine whether the changes constituted a ‘substantial change in circumstances’ under section 237 of the Fair Work Act 2009. The parties debated whether the changes in operational practices and market conditions amounted to such a substantial change and whether the agreement could be adapted through negotiation rather than terminated.

The Fair Work Commission examined the evidence presented by both parties and considered the nature and extent of the changes claimed by the applicant. The Commission held that while there had been changes in the operational environment, these did not constitute a substantial change in circumstances that would justify terminating the enterprise agreement. The Commission found that the agreement could be adapted through further negotiation between the parties, and accordingly, the application for termination was dismissed. The Commission emphasised the importance of maintaining stability in enterprise agreements and encouraged the parties to continue negotiations to address the changes in their working environment.

The Fair Work Commission ordered that the application for termination of the enterprise agreement be dismissed and directed the parties to engage in further negotiations to address the changes in their working environment. The Commission highlighted the importance of maintaining stability in enterprise agreements and the preference for resolving disputes through negotiation rather than termination.

Saunders International Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established