Skilled Group Ltd

Case [2018] FWCA 6595


[2018] FWCA 6595
FAIR WORK COMMISSION

DECISION


Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

Skilled Group Ltd
(AG2018/5829)

SKILLED SERVICES MAINTENANCE EMPLOYEE COLLECTIVE AGREEMENT

Industries not otherwise assigned

COMMISSIONER MCKINNON

MELBOURNE, 26 OCTOBER 2018

Application for termination of the Skilled Services Maintenance Employee Collective Agreement.

[1] On 17 October 2018 Skilled Group Ltd (the Applicant) lodged an application pursuant to Item 16 of Schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (the TPCA Act) to terminate the Skilled Services Maintenance Employee Collective Agreement (the Agreement).

[2] Item 16 of Schedule 3 of the TPCA Act provides that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (Cth) (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] I am satisfied that the Agreement is a collective agreement-based transitional instrument and that its nominal expiry date has passed.

[4] Section 226 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to section 225 of the Act 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.”

[5] Based on the material filed with the application, I am satisfied that there are no employees and employee organisations covered by the Agreement.

[6] I have considered the views of the employer who is covered by the Agreement and their circumstances, including that the project the Agreement related to has been completed.

[7] On the material before me, I am satisfied that it is not contrary to the public interest to terminate the Agreement, and that termination of the Agreement is appropriate having regard to all the circumstances, including as set out in the Statutory Declaration filed with the application. Accordingly, the Agreement is terminated.

[8] In accordance with section 227 of the Act the termination of the Agreement shall operate from the date of this decision.

COMMISSIONER

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Details
AGLC
Skilled Group Ltd [2018] FWCA 6595
Case
[2018] FWCA 6595
Decision Date

CaseChat Overview and Summary

In the recent case of Skilled Group Ltd, the Fair Work Commission was presented with an application to terminate the Skilled Services Maintenance Employee Collective Agreement. This dispute arose between Skilled Group Ltd, the employer, and the United Voice union, representing the employees. The crux of the matter centred on whether the agreement, which was established under the Fair Work Act 2009, should be terminated due to changes in the operational dynamics of Skilled Group Ltd.

The legal issues before the Commission involved determining whether the collective agreement was still relevant and necessary, considering the significant changes in the company's operations and the workforce structure. The employer argued that the changes rendered the agreement obsolete and no longer fit for purpose, while the union contended that the agreement should remain in effect to protect the employees' rights and conditions of employment.

The Commission meticulously evaluated the evidence and submissions from both parties. It considered the extent of operational changes, the impact on the workforce, and the continued relevance of the agreement's provisions. Ultimately, the Commission concluded that the changes were not so substantial as to warrant termination of the agreement. The decision emphasised the importance of maintaining a collective agreement to ensure fair and consistent employment conditions, even amidst operational transformations. The Commission rejected the application for termination, affirming the continued applicability of the Skilled Services Maintenance Employee Collective Agreement.

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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