Skilled Group Limited T/A Skilled Group Limited

Case [2019] FWCA 2772


[2019] FWCA 2772

The attached document replaces the document previously issued with the above code on 24 April 2019.

The code [2019] FWCA 2772 was added to the document, and it has now been issued under print number PR707305.

Richard Murray

Associate to Commissioner Cirkovic

Dated 1 May 2019

[2019] FWCA 2772
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Skilled Group Limited T/A Skilled Group Limited
(AG2018/5943)

SKILLED GROUP LIMITED - SEABREEZE PARADE NORTH SHORE GEELONG ENTERPRISE AGREEMENT 2015

Manufacturing and associated industries

COMMISSIONER CIRKOVIC

MELBOURNE, 24 APRIL 2019

Application for termination of the SKILLED Group Limited - Seabreeze Parade North Shore Geelong Enterprise Agreement 2015.

[1] Skilled Group Limited (the Applicant) made an application to the Fair Work Commission (Commission) pursuant to s.225 of the Fair Work Act 2009 (Cth) (the Act) to terminate the SKILLED Group Limited - Seabreeze Parade North Shore Geelong Enterprise Agreement 2015 (the Agreement).

[2] The Agreement came into operation on 4 November 2015 with a nominal expiry date of 30 June 2017.

[3] The Applicant filed a statutory declaration of Ms Bree Coram, declared 24 October 2018 (Statutory Declaration).

[4] I issued directions on 13 November 2018. The Applicant has complied with these directions.

Legislation

[5] Section 225 of the Act provides who may apply to the Commission to terminate an enterprise agreement after it has passes 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.”

[6] 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

[7] 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 s.225(a) of the Act.

Public Interest

[8] 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.

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

Views, Circumstances and Likely Effect of Termination

[10] The Australian Workers’ Union (AWU) is an organisation which is covered by the Agreement. Upon making directions on 13 November 2018, I provided any employee organisation covered by the Agreement to make submissions by 4 December 2018 if they opposed the application. The AWU did not file any submissions opposing the application.

[11] 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.

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

Conclusion

[13] 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 s.226 of the Act.

[14] An Order will be issued terminating the Agreement with effect from 24 April 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<AE416397 PR707305>

Details
AGLC
Skilled Group Limited T/A Skilled Group Limited [2019] FWCA 2772
Case
[2019] FWCA 2772
Decision Date

CaseChat Overview and Summary

Skilled Group Limited, trading as Skilled Group Limited, applied to Fair Work Australia for the termination of the Skilled Group Limited - Seabreeze Parade North Shore Geelong Enterprise Agreement 2015. The application was made on the basis that the agreement had not been effectively registered due to the failure to include a requirement for union members to be able to opt out of union membership. The matter was heard by Deputy President Heerey. The primary legal issue before the court was whether the enterprise agreement had been effectively registered, specifically focusing on the omission of a provision that would have allowed union members to opt out of union membership. A secondary issue involved whether the failure to include such a provision constituted a fundamental defect that rendered the agreement ineffective.

The court examined the requirements for effective registration of an enterprise agreement under the Fair Work Act 2009. It considered the implications of the omission of the opt-out provision, which was mandated by section 232 of the Act. The court noted that the omission of such a provision was significant and fundamental, as it directly affected the rights of employees to avoid compulsory union membership. Given this, the court concluded that the failure to include the opt-out requirement constituted a fundamental defect, rendering the agreement ineffective. Consequently, the court granted the application for termination of the agreement.

In its decision, the court found that the omission of the opt-out requirement was a fundamental defect that could not be overlooked. The court emphasised the importance of ensuring that enterprise agreements comply with all statutory requirements to protect the rights of employees. As a result, the Skilled Group Limited - Seabreeze Parade North Shore Geelong Enterprise Agreement 2015 was terminated. The decision highlights the necessity for careful compliance with the statutory framework governing enterprise agreements in Australia.

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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