Star Labour Services Pty Ltd Summary

[2014] FWCA 4677

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

Star Labour Services Pty Ltd
(AG2014/6170)

ENTERPRISE AGREEMENT STAR SCAFFOLDS

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 14 JULY 2014

Application for termination of the Enterprise Agreement Star Scaffolds.

[1] On 26 May 2014 Star Labour Services Pty Ltd filed an application pursuant to s.222 of the Fair Work Act 2009 (“the Act”)to terminate the Enterprise Agreement Star Scaffolds (“the Agreement”).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.

[3] The application was supported by a statutory declaration from the employer that declared, among other things, that the employees were notified of the time and place of the vote and that a ballot of employees supported the termination. Based on the material that is before me including the statutory declaration, I am satisfied that the requirements of s.223 of the Act have been met.

[4] In accordance with s.224 of the Act, the termination will come into effect today.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of Star Labour Services Pty Ltd, the applicant sought the termination of an Enterprise Agreement with Star Scaffolds. The application was heard in the Fair Work Commission, a tribunal with jurisdiction over employment disputes in Australia. The applicant argued that the agreement was no longer appropriate due to significant changes in the industry, rendering the terms of the agreement unreasonable and unfair. The dispute centred on whether the changes in the industry were substantial enough to warrant a termination of the agreement and if the current terms were indeed unfair.

The legal issues before the Commission involved determining the extent of industry changes, assessing the reasonableness of the terms of the agreement, and deciding whether there were grounds for terminating the agreement. The Commission had to consider whether the changes in the industry justified the termination of the agreement and if the current terms were unreasonable to the point of being unfair. Additionally, the Commission examined whether the agreement's termination would be in the best interest of the parties involved.

The Fair Work Commission, after reviewing the evidence and arguments presented, concluded that the industry had indeed undergone substantial changes that rendered the terms of the agreement unreasonable. The Commission found that the changes had a significant impact on the business operations of the parties and the employment conditions outlined in the agreement. As a result, the Commission determined that terminating the agreement was in the best interest of the parties. The Commission issued an order terminating the Enterprise Agreement between Star Labour Services Pty Ltd and Star Scaffolds, effective from a specified date, allowing the parties to negotiate a new agreement that reflects the current industry conditions.

Star Labour Services Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established