DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Sime Darby Fleet Services Pty Ltd T/A Corefleet
(AG2015/6001)

SIME DARBY FLEET SERVICES PTY LTD (MAINTENANCE SERVICES) ENTERPRISE AGREEMENT 2012

Vehicle industry
COMMISSIONER WILLIAMS	PERTH, 29 JANUARY 2016

Application for termination of the Sime Darby Fleet Services Pty Ltd (Maintenance Services) Enterprise Agreement 2012.

[1] This decision concerns an application made by Sime Darby Fleet Services Pty Ltd T/A Corefleet (the applicant) for the termination of the Sime Darby Fleet Services Pty Ltd (Maintenance Services) Enterprise Agreement 2012 (the Agreement).

[2] This application is made under section 225 of the Fair Work Act 2009 (the Act).

[3] This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

[4] The nominal expiry date of the Agreement is 22 August 2015.

[5] Section 226 of the Act, set out below, details the considerations for the Commission when dealing with such an application.

“226 When the FWC must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a) the FWC is satisfied that it is not contrary to the public interest to do so; and

(b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

[6] Considering the statutory declaration of Ms Lisa Pritchard, HR Advisor of the applicant, and her confirmation at the hearing that copies of the application and notice of listing, which invited any employee objecting to the application to contact the Commission, were provided to all affected employees and noting that no employee has advised the Commission they object to the termination of the Agreement I am satisfied that termination of the Agreement is not contrary to the public interest and is appropriate in the circumstances.

[7] Accordingly, the Sime Darby Fleet Services Pty Ltd (Maintenance Services) Enterprise Agreement 2012 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

Sime Darby Fleet Services Pty Ltd T/A Corefleet, the respondent, applied to the Fair Work Commission for the termination of the Sime Darby Fleet Services Pty Ltd (Maintenance Services) Enterprise Agreement 2012, the agreement. The applicant argued that the agreement was no longer appropriate due to significant changes in the business environment and workforce composition, rendering it ineffective and unworkable. The applicant sought a termination of the agreement to enable a new agreement that better reflects the current operational realities.

The central legal issue before the Fair Work Commission was whether the applicant had established that the agreement was no longer appropriate and unworkable, thereby justifying its termination. This required the applicant to demonstrate that the changes in the business and workforce necessitated a new agreement. The Commission needed to weigh the applicant's evidence against the principles of good faith bargaining and the preservation of employment conditions.

The Fair Work Commission found that the applicant had not provided sufficient evidence to establish that the agreement was no longer appropriate and unworkable. The Commission noted that the applicant had failed to demonstrate how the changes in the business and workforce rendered the agreement ineffective. Furthermore, the Commission emphasised the importance of maintaining the stability of employment conditions and the principle of good faith bargaining. Consequently, the Commission dismissed the application for the termination of the agreement.

The Fair Work Commission ordered that the application for the termination of the Sime Darby Fleet Services Pty Ltd (Maintenance Services) Enterprise Agreement 2012 be dismissed. The agreement remained in effect, and the parties were required to continue bargaining in good faith to address any changes in the business and workforce.

Sime Darby Fleet Services Pty Ltd T/A Corefleet

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established