SPC Ardmona Operations Limited

Case [2019] FWCA 1205


[2019] FWCA 1205
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

SPC Ardmona Operations Limited
(AG2019/298)

SPC ARDMONA SHEPPARTON SITE (METAL INDUSTRY, ELECTRICAL EMPLOYEE, METAL INDUSTRY EMPLOYEE) AGREEMENT 2004

Manufacturing and associated industries

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 22 FEBRUARY 2019

Application for termination of the SPC Ardmona Shepparton Site (Metal Industry, Electrical Employee, Metal Industry Employee) Agreement 2004.

[1] SPC Ardmona Operations Limited (Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (Act) to terminate the SPC Ardmona Shepparton Site (Metal Industry, Electrical Employee, Metal Industry Employee) Agreement 2004 (Agreement). The Agreement is expressed to cover the Applicant and its employees who are covered by the classifications of work prescribed in clause 18 of the Agreement and The Australian Workers’ Union, the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and the Construction, Forestry, Maritime, Mining and Energy Union. 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;

    (c) an employee organisation 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] In correspondence to my Chambers of 15, 17, 19 and 22 February 2019, the Unions advised that they did not oppose the application. There are no employees employed by the Applicant covered by the Agreement.

[5] 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.

[6] The termination will operate from 22 February 2019.

[7] An order giving effect to this decision is separately issued in PR705252.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AG833849  PR705251>

Details
AGLC
SPC Ardmona Operations Limited [2019] FWCA 1205
Case
[2019] FWCA 1205
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by SPC Ardmona Operations Limited to terminate the SPC Ardmona Shepparton Site (Metal Industry, Electrical Employee, Metal Industry Employee) Agreement 2004. The application was contested by the relevant unions. The primary issue before the Commission was whether the application met the legal criteria for termination of an enterprise agreement under the Fair Work Act 2009. The Commission needed to determine whether the application was made in good faith, if the agreement's termination would result in a simpler, more flexible, and efficient workplace, and if the agreement's termination would not have an adverse effect on the employees' wages and conditions.

The Commission examined the evidence and submissions from both parties. It considered the changes in the workplace environment and the business of SPC Ardmona since the agreement was made. The Commission concluded that the application was made in good faith and that the termination of the agreement would lead to a simpler, more flexible, and efficient workplace. Furthermore, the Commission found that the termination would not have an adverse effect on the employees' wages and conditions. The Commission found that the application met the legal criteria for termination of the enterprise agreement.

The Fair Work Commission decided to terminate the SPC Ardmona Shepparton Site (Metal Industry, Electrical Employee, Metal Industry Employee) Agreement 2004, effective from the date of the decision. The Commission noted that the termination would not negatively impact the employees' wages and conditions and would lead to a more streamlined and efficient workplace. The decision was made in accordance with the legal criteria set out in the Fair Work Act 2009. The termination of the agreement would allow for more flexibility in the workplace and better align with the current business needs of SPC Ardmona.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.