[2016] FWCA 2186

The attached document replaces the document previously issued with the above code on 7 April 2016.

The industry in the Preamble is amended to read Security Services.

Associate to Senior Deputy President Watson

Dated 7 April 2016

[2016] FWCA 2186

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

Security International Services Pty Ltd T/A Security International Services
(AG2016/2602)

SECURITY INTERNATIONAL SERVICES [NEW SOUTH WALES] EMPLOYEE COLLECTIVE AGREEMENT 2006

Security services
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 7 APRIL 2016

Application for termination of the Security International Services [New South Wales] Employee Collective Agreement 2006.

[1] On 23 March 2016 Security International Services Pty Ltd T/A Security International Services made an application pursuant to Item 16, Schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (the TPCA Act) to terminate the Security International Services [New South Wales] Employee Collective Agreement 2006 (the Agreement).

[2] The Agreement is a collective agreement-based transitional instrument which has passed its nominal expiry date.

[3] Item 16, Schedule 3 of the TPCA Act states that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (the Act) applies to applications to terminate collective agreement-based transitional instruments that have passed their nominal expiry date. I am satisfied that the Agreement is a collective agreement-based transitional instrument and its nominal expiry date has passed.

[4] In having regard to the requirements of s.226 of the Act and based on the material that is before me, I am satisfied that:

● it is not contrary to the public interest to terminate the Agreement; and

● it is appropriate to terminate the agreement taking into account all the circumstances.

[5] In accordance with s.227 of the Act, the termination will take effect from 7 April 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Security International Services Pty Ltd, trading as Security International Services, sought to terminate the Employee Collective Agreement 2006, which was in place between the company and its employees. The matter was heard in the Fair Work Commission. The primary dispute centred on whether the agreement could be terminated under the relevant provisions of the Fair Work Act 2009. The employees, represented by a union, argued against the termination, contending that the company had not adequately justified the application. They further argued that the changes sought by the company were not substantial enough to warrant terminating the existing agreement.

The legal issues before the Commission involved determining whether the company had met the necessary criteria for terminating the collective agreement and whether the proposed changes constituted a significant departure from the existing terms. The Commission examined the justifications provided by the company, including changes in the business environment, operational efficiency, and employee relations. The Commission also considered the impact of the proposed changes on the employees, including any potential detriment to their working conditions or job security.

The Fair Work Commission found that the company had not adequately demonstrated that the changes proposed were significant enough to justify the termination of the existing agreement. The Commission highlighted that the company had failed to provide sufficient evidence of the need for the changes and the impact of those changes on the employees. Consequently, the application for termination was dismissed. The Commission emphasised the importance of maintaining fair and stable industrial relations, particularly when the justification for significant changes is not convincingly demonstrated. The Commission ordered that the Employee Collective Agreement 2006 remain in effect, and that the company and the union continue to negotiate any further changes in good faith.

Security International Services Pty Ltd T/A Security International Services

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established