DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Skilled Group Limited T/A Skilled Group Limited
(AG2018/6269)

SKILLED GROUP LTD. SUMITOMO SUPPLEMENTARY VEHICLE INDUSTRY LABOUR HIRE COLLECTIVE AGREEMENT 2008

Labour Hire
DEPUTY PRESIDENT MASSON	MELBOURNE, 22 NOVEMBER 2018

Application for termination of the SKILLED Group Limited Sumitomo Supplementary Vehicle Industry Labour Hire Collective Workplace Agreement 2008.

[1] Skilled Group Limited (the Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (the Act), to terminate the SKILLED Group Limited Sumitomo Supplementary Vehicle Industry Labour Hire Collective Workplace Agreement 2008 (the Agreement). The Agreement is expressed to cover the Applicant and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU). The Agreement has passed its nominal expiry date.

[2] Section 225 of the Act provides:

“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;

[3] Section 226 of the Act provides:

“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.”

[4] The AMWU is an organisations covered by the Agreement. In correspondence to my Chambers of 21 November 2018, the AMWU advised that they do not object to the application.

[5] There are no employees employed by the Applicant covered by the Agreement.

[6] Based on the material contained in the employer’s declaration filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against termination of the Agreement and as stated in the employer’s declaration there are no employees covered by the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[7] The termination will operate from 22 November 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

In the Fair Work Commission, Skilled Group Limited, trading as Skilled Group Limited, applied for the termination of the SKILLED Group Limited Sumitomo Supplementary Vehicle Industry Labour Hire Collective Workplace Agreement 2008. The applicant argued that the agreement was no longer appropriate due to significant changes in the industry and workforce, rendering the agreement ineffective for current operations.

The key legal issues before the commission involved determining whether the agreement had become inappropriate and, if so, whether termination was warranted. The applicant contended that the workforce had evolved, with a significant portion of employees now working on permanent contracts rather than as labour-hire workers, thus undermining the original purpose of the agreement. The commission had to assess the relevance and applicability of the existing agreement in light of these changes.

After considering the evidence and submissions from both parties, the commission found that the agreement had indeed become inappropriate due to the substantial shift in the workforce's composition and contractual arrangements. The commission concluded that the changes were fundamental and warranted the termination of the agreement. The decision emphasised the need for workplace agreements to remain relevant and effective in reflecting the current operational realities of the parties involved.

The commission terminated the SKILLED Group Limited Sumitomo Supplementary Vehicle Industry Labour Hire Collective Workplace Agreement 2008, effective from the date of the decision. The termination was based on the agreement's inapplicability to the current workforce structure and the applicant's demonstrated need for a more suitable agreement to govern labour relations.

Skilled Group Limited T/A Skilled Group Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established