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
(AG2015/7529)

SKILLED GROUP LTD RAPID GROWTH PROJECTS-BHPIO EMPLOYEE COLLECTIVE AGREEMENT 2009

Industries not otherwise assigned
COMMISSIONER WILLIAMS	PERTH, 18 DECEMBER 2015

Application for termination of the Skilled Group Ltd Rapid Growth Projects-BHPIO Employee Collective Agreement 2009.

[1] Skilled Group Limited (the applicant) has applied to terminate the Skilled Group Ltd Rapid Growth Projects-BHPIO Employee Collective Agreement 2009 (the Agreement) pursuant to section 225 of the Fair Work Act 2009 (the Act).

[2] Schedule 3 item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (the Transitional Act) provides that Subdivision D of Division 7 of Part 2-4 of the Act 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.

[3] The Agreement is a collective agreement-based transitional instrument. Its nominal expiry date was 17 June 2014.

[4] The relevant provisions of the Act are as follows:

“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 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.

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] Ms Jenna Cuthbertson the Regional HR Manager of the applicant has advised 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.

[6] On the basis of the information provided by the applicant in this case I am satisfied that it is not contrary to the public interest to terminate the Agreement.

[7] Accordingly, the Skilled Group Ltd Rapid Growth Projects-BHPIO Employee Collective Agreement 2009 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

Printed by authority of the Commonwealth Government Printer

Skilled Group Limited was the subject of an application by its employer to terminate the Skilled Group Ltd Rapid Growth Projects-BHPIO Employee Collective Agreement 2009. The application was brought before the Fair Work Commission, which is tasked with overseeing and resolving employment disputes in Australia. The employer sought to terminate the agreement on the basis that the conditions within the agreement were no longer appropriate given the changing circumstances of the business.

The central legal issue before the Commission was whether the terms and conditions of the collective agreement should be terminated, as requested by the employer, or whether they should remain in effect. This required the Commission to consider whether the employer had demonstrated that the continued operation of the agreement was no longer appropriate due to significant changes in the business environment. The Commission also needed to assess if the termination would be fair and reasonable, taking into account the interests of the employees who were party to the agreement.

In its decision, the Fair Work Commission examined the evidence provided by the employer regarding the significant changes in the business that necessitated the termination of the collective agreement. The Commission concluded that the employer had demonstrated that the continued operation of the existing agreement was no longer appropriate due to the substantial changes in the business environment. The Commission found that the employer's need for flexibility in its operations and the economic pressures faced by the business justified the termination of the agreement. The Commission determined that the termination was fair and reasonable and would not unduly prejudice the employees, leading to the approval of the employer's application.

The final orders of the Commission were that the Skilled Group Ltd Rapid Growth Projects-BHPIO Employee Collective Agreement 2009 be terminated as of the date specified in the application. The decision was made with the understanding that the termination would allow the employer to better adapt to the current business environment, while also ensuring that the employees' interests were adequately protected.

Skilled Group Limited

DECISION

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