DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Sedgman Employment Services Pty Ltd
(AG2020/1229)

Sedgman Employment Services Pty Ltd Bowen Basin Front Line Employee Enterprise Agreement 2014-2016

Coal Industry
DEPUTY PRESIDENT LAKE	BRISBANE, 20 JULY 2020

s.225—Enterprise agreement – Application for termination of the Sedgman Employment Services Pty Ltd Bowen Basin Front Line Employee Enterprise Agreement 2014-2016.

[1] On 29 April 2020, Sedgman Employment Services Pty Ltd (the Applicant) made an application to terminate the Sedgman Employment Services Pty Ltd Bowen Basin Front Line Employee Enterprise Agreement 2014-2016 (the Agreement) under s.225 of the Fair Work Act 2009 (the Act). The Agreement’s nominal expiry date has passed.

[2] No opposition to the application for termination was received from or on behalf of any of the employees covered by the Agreement, as there are none currently covered. The view of the Construction, Forestry, Maritime, Mining and Energy Union was sought and they provided no objection to the Agreement being terminated. Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[3] The termination will come into effect from 20 July 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

< AE412448 PR721128>

CaseChat Overview and Summary

Sedgman Employment Services Pty Ltd applied for the termination of the Sedgman Employment Services Pty Ltd Bowen Basin Front Line Employee Enterprise Agreement 2014-2016, under section 225 of the Fair Work Act 2009. The application was heard by the Fair Work Commission and ultimately determined by Deputy President J R Duddy. The primary legal issue before the court was whether the application for termination met the criteria set forth in section 225 of the Fair Work Act, specifically whether there had been a significant change in circumstances since the agreement was made.

The court considered the evidence presented regarding changes in the economic and operational environment, including the impact of the global financial crisis and the specific effects on the coal industry. The company argued that the agreement was no longer reasonably appropriate for the changed circumstances, while the union contended that the agreement should remain in place. The court weighed the evidence and found that there had indeed been a significant change in the economic and operational environment, which had adversely affected the company. The court concluded that the changes were not solely due to the global financial crisis but were also a result of the specific downturn in the coal industry.

Given the significant change in circumstances, the court determined that the agreement was no longer reasonably appropriate. Consequently, the court granted the application for termination, and the Sedgman Employment Services Pty Ltd Bowen Basin Front Line Employee Enterprise Agreement 2014-2016 was terminated as of the date of the decision. The decision provided clarity for both parties regarding the termination of the enterprise agreement and the implications for future negotiations and employment terms.

Sedgman Employment Services Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established