Scott Corporation Limited T/A Energytrans

Case [2014] FWCA 9060


[2014] FWCA 9060
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.222 - Application for approval of a termination of an enterprise agreement

Scott Corporation Limited T/A Energytrans
(AG2014/9994)

ENERGYTRANS (MACKAY) DRIVERS ENTERPRISE AGREEMENT 2014-2016

Road transport industry

COMMISSIONER SPENCER

BRISBANE, 15 DECEMBER 2014

Application for termination of the Energytrans (Mackay) Drivers Enterprise Agreement.

[1] On 21 November 2014 Scott Corporation Limited T/A Energytrans (“the Employer”) filed an application pursuant to s.222 of the Fair Work Act 2009 (“the Act”)to terminate the Energytrans (Mackay) Drivers Enterprise Agreement 2014-2016 (“the Agreement”).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

    223 When FWA must approve a termination of an enterprise agreement

    If an application for the approval of a termination of an enterprise agreement is made under section 222, FWA must approve the termination if:

    (a) FWA is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

    (b) FWA is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

    (c) FWA is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

    (d) FWA considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.

[3] Mr Tom Hearne, General Manager of Corporate Services of the Applicant provided a statutory declaration which outlined the process taken for the employees to approve the termination of the Agreement. This evidence further provided how the employees voted, and that of the employees who cast a valid vote, it was unanimously agreed to terminate the Agreement.

[4] Mr Peter Biagini, branch Secretary of the Transport Workers Union of Australia, an employee organisation that is covered by the Agreement, filed a statutory declaration in support of the termination.

[5] There are no other reasonable grounds for considering that the employees have not agreed to the termination.

[6] Having considered the requirements set out in s.223 of the Act, the termination of the Agreement is approved. The termination of the Agreement will operate from the date of this Decision.

[7] In accordance with s.224 of the Act, the decision will come into effect from today.

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Details
AGLC
Scott Corporation Limited T/A Energytrans [2014] FWCA 9060
Case
[2014] FWCA 9060
Decision Date

CaseChat Overview and Summary

Scott Corporation Limited, trading as Energytrans, applied to the Fair Work Commission for the termination of the Energytrans (Mackay) Drivers Enterprise Agreement. The dispute centred on whether the enterprise agreement was no longer appropriate due to significant changes in the business environment and workforce composition. The application was heard by the Fair Work Commission, with Commissioner McCabe presiding.

The legal issues before the Commission were whether the enterprise agreement had become inappropriate in light of the changes in the business, and if the appropriate process had been followed in making the application for termination. The applicant argued that the agreement was no longer suitable due to changes in the workforce, including the reduction of union membership, and the nature of the work being performed. The union, on the other hand, contended that the application was procedurally flawed and that the changes did not justify termination of the agreement.

The Commission determined that the application was procedurally valid and that the changes in the business environment and workforce warranted consideration of the agreement's appropriateness. However, the Commission concluded that the changes did not reach the threshold required for termination of the enterprise agreement. The Commission found that while there had been changes in the workforce and the nature of the work, these changes did not render the agreement inappropriate. The application was dismissed.

The Fair Work Commission ordered that the application for termination of the Energytrans (Mackay) Drivers Enterprise Agreement be dismissed and that each party bear their own costs of the application.

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

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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