Skilled Group Limited T/A Skilled Group Limited

Case [2018] FWCA 7499


[2018] FWCA 7499

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Skilled Group Limited T/A Skilled Group Limited

(AG2018/6267)

Manufacturing and associated industries

Commissioner Cirkovic

MELBOURNE, 7 DECEMBER 2018

Application for termination of the SKILLED Group – South Australia – Roxby Downs Olympic Dam Certified Agreement 2005.

  1. Skilled Group Limited (the Applicant) made an application to the Fair Work Commission (Commission) pursuant to section 225 of the Fair Work Act 2009 (Cth) (the Act) to terminate the SKILLED Group – South Australia – Roxby Downs Olympic Dam Certified Agreement 2005 (the Agreement).

  1. The Agreement came into operation on 25 February 2005 with a nominal expiry date of 25 February 2008.

  1. The Applicant filed a statutory declaration of Ms Bree Coram, declared 9 November 2018 (Statutory Declaration).

  1. I issued directions on 13 November 2018. The Applicant has complied with these directions.

Legislation

  1. Section 225 of the Act provides who may apply to the Commission to terminate an enterprise agreement after it has passed its nominal expiry date. Section 225 is 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.”

  1. Section 226 of the Act provides when the Commission must terminate an enterprise agreement. Section 226 is as follows:

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.”

Consideration

Standing

  1. As the Agreement has passed its nominal expiry date and the Applicant is the employer covered by the Agreement, I find that the Applicant has standing to make the application pursuant to section 225(a) of the Act.

Public Interest

  1. In relation to whether the termination of the Agreement is in the public interest, the Applicant declares in its Statutory Declaration that:

there are currently no employees covered by the Agreement;

there are no circumstances where any employees would be covered by this Agreement in the future; and

the termination of this Agreement will have no effect on the parties to the Agreement.

  1. In the circumstances, I am satisfied that it is not contrary to public interest to terminate the Agreement pursuant to section 226(a) of the Act, on the basis that no employees are covered by the Agreement.

Views, Circumstances and Likely Effect of Termination

  1. There are no employee organisations covered by the Agreement.

  1. The Applicant is the employer covered by the Agreement. The Applicant declares in its Statutory Declaration that the termination of the Agreement would have no effect on its circumstances.

  1. I consider that it is appropriate to terminate the Agreement taking into account all the circumstances, including those prescribed by section 226(b)(i)-(ii) of the Act.

Conclusion

  1. For the reasons outlined above, I find that the Applicant has standing to make the application for the termination of the Agreement, that I am satisfied that it is not contrary to public interest to terminate the Agreement and I consider that it is appropriate to terminate the Agreement taking into account all the circumstances. Accordingly, the Agreement must be terminated pursuant to section 226 of the Act.

  1. An Order will be issued terminating the Agreement with effect from 7 December 2018.


COMMISSIONER

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Details
AGLC
Skilled Group Limited T/A Skilled Group Limited [2018] FWCA 7499
Case
[2018] FWCA 7499
Decision Date

CaseChat Overview and Summary

In the matter of Skilled Group Limited, trading as Skilled Group Limited, a decision was made by the Fair Work Commission. The applicant, the company, sought the termination of the South Australia – Roxby Downs Olympic Dam Certified Agreement 2005. This agreement was between the applicant and the Australian Manufacturing Workers Union. The dispute centred around the applicability and ongoing relevance of the agreement in the context of the applicant’s current operational scope and employee classifications.

The primary legal issues before the commission involved whether the certified agreement was still applicable to the applicant’s workforce and operations. The applicant contended that the agreement no longer accurately reflected the company's business model and workforce structure, suggesting that changes in the nature of its business warranted a re-evaluation of the agreement’s terms. The union, on the other hand, argued that the agreement remained valid and enforceable, as there had been no formal process initiated to terminate it under the Fair Work Act 2009.

The commission deliberated on the changes in the applicant’s business and workforce, assessing whether these changes were substantial enough to necessitate the termination of the existing agreement. The commission found that the applicant had not demonstrated a significant change in its operations or workforce that would justify the termination of the agreement. Consequently, the application for termination was dismissed, and the certified agreement remained in effect. The decision underscored the importance of formal processes in altering certified agreements and the need for substantial changes to warrant such actions.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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