[2016] FWCA 953
DECISION
| Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 |
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument
Skilled Group Limited
(AG2015/6880)
SKILLED GROUP LIMITED RIO TINTO PILBARA IRON EMPLOYEE
COLLECTIVE AGREEMENT 2009
Industries not otherwise assigned
| COMMISSIONER HAMPTON | ADELAIDE, 11 FEBRUARY 2016 |
Application for termination of the Skilled Group Ltd Rio Tinto Pilbara Iron Employee
Collective Agreement.
[1] This decision concerns an application by Skilled Group Limited pursuant to Item 16 of
Schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act
2009 (the Transitional Act), and as a consequence, s.225 of the Fair Work Act 2009 (the FW
Act). The application seeks to terminate the Skilled Group Ltd Rio Tinto Pilbara Iron
1
Employee Collective Agreement .
[2] The Agreement is a collective agreement-based transitional instrument for the
2
| purposes of the Transitional Act | with a nominal expiry date of 29 July 2014. |
| The relevant legislation |
[3] Item 16 of Schedule 3 of the Transitional Act provides:
“16 Collective agreement-based transitional instruments: termination by the FWC
(1) Subdivision D of Division 7 of Part 2-4 of the FW Act (which deals with termination of enterprise agreements after their nominal expiry date) applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument. (2) For the purpose of the application of Subdivision D to an old IR agreement, the agreement’s nominal expiry date is taken to be the end of the period of the agreement.”
[2016] FWCA 953
[4] Subdivision D of Division 7 of Part 2-4 of the FW Act states:
“225 Application for termination of an enterprise agreement after its nominal
expiry date
If an enterprise agreement has passed its nominal expiry date, any of the following
may apply to the FWC for the termination of the agreement:
(a) one or more of the employers covered by the agreement; (b) an employee covered by the agreement; (c) an employee organisation covered by the agreement.
226 When FWA 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.
227 When termination comes into operation
If an enterprise agreement is terminated under section 226, the termination operates
from the day specified in the decision to terminate the agreement.”
[5] This application was accompanied by a statutory declaration of Ms Jenna Cuthbertson,
Regional HR Manager – WA/SA/NT, which addressed the relevant criteria established by
s.226 of the FW Act.
[6] Ms Cuthbertson has confirmed to the Commission that the Agreement does not cover
any employee and there are no circumstances where any employee would be covered by the
Agreement in the future. This arises, for the most part, from the acquisition of the employer
by another business and changes in, or conclusion of, the project activity concerned.
[7] I am satisfied that the termination of the Agreement would not be contrary to the
public interest. I am also satisfied that the termination is appropriate having regard to the
likely effect of that action and the circumstances of the employees and the employer.
[2016] FWCA 953
[8] The termination will take effect from midnight on Friday 12 February 2016.
COMMISSIONER
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<Price code A, AC326499 PR577013>
1
The Agreement was originally approved pursuant to the Workplace Relations Act 2006.
2
Item 2(5)(c)(i) of Schedule 3.
- AGLC
- Skilled Group Limited [2016] FWCA 953
- Case
- [2016] FWCA 953
- Decision Date
CaseChat Overview and Summary
The legal issues the court had to resolve included whether the application for termination was made in accordance with the requirements of the Fair Work Act and whether the termination would not be contrary to the public interest. The applicant needed to demonstrate that the agreement no longer covered any employees, and that there were no future circumstances under which it would. Additionally, the court had to consider the views of all parties involved, including the employees, employers, and any employee organizations, and assess the likely effects of the termination on these parties. The court had to balance these factors to determine if the termination was appropriate under the circumstances.
The Commissioner concluded that the termination of the agreement would not be contrary to the public interest, as confirmed by the statutory declaration of Ms. Jenna Cuthbertson, Regional HR Manager for WA/SA/NT. The Commissioner was satisfied that the agreement did not cover any employees and there were no future circumstances where it would. The Commissioner also found that the termination was appropriate, taking into account the views of all relevant parties and the likely effects of the termination. The termination was ordered to take effect from midnight on Friday, 12 February 2016.
Orders
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