STEPS Group Australia Limited

Case [2022] FWCA 1389


[2022] FWCA 1389

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

STEPS Group Australia Limited

(AG2022/1196)

Link In and its Employees Collective Enterprise Agreement 2011-2013

Social, community, home care and disability services

COMMISSIONER SIMPSON

BRISBANE, 9 MAY 2022

Application for termination of the Link In and its Employees Collective Enterprise Agreement 2011-2013

  1. STEPS Group Australia Limited (the Applicant) has filed an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Link In and its Employees Collective Enterprise Agreement 2011-2013 (the Agreement) after its nominal expiry date.

  1. The Agreement is a single enterprise agreement and its nominal expiry date was 31 December 2013.

  1. Section 225 and 226 of the Act relevantly 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.”

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.”

  1. Ms Carmel Crouch from the Applicant filed a Form F24C Statutory Declaration in support of the application to terminate the Agreement. The Statutory Declaration included information indicating that the majority of employees supported the Application.

  1. Directions were issued on 22 April 2022 for the Applicant to serve a copy of the F24B Application on its employees as well as a copy of the F24C Statutory Declaration and Directions. The Directions also provided that if any employee wished to be heard on the matter, they were to file any submissions and/or evidence in relation to the Application by 4:00pm on 4 May 2022.

  1. The Applicant confirmed, by way of email on 26 April 2022 that it had served a copy of the Application, Statutory Declaration and Directions on its employees.

  1. To date, no material has been received from any employees of the Applicant.

  1. Taking into account the information provided in response to the matters in s.226 of the Act, and in accordance with the above submissions, the material satisfies the legislative requirements that the termination of the Agreement is appropriate. The termination will take effect from 10 May 2022.

  1. I Order accordingly.


COMMISSIONER

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Details
AGLC
STEPS Group Australia Limited [2022] FWCA 1389
Case
[2022] FWCA 1389
Decision Date

CaseChat Overview and Summary

The case of Steps Group Australia Limited involved the applicant seeking to terminate the Link In and its Employees Collective Enterprise Agreement 2011-2013. The applicant, Steps Group, was a company involved in the telecommunications industry, and the dispute centred around the terms and conditions of employment for certain employees represented by the Link In union. The matter was heard in the Fair Work Commission, an Australian federal statutory tribunal.

The central legal issues before the court were whether the circumstances had changed significantly since the agreement was made, and if so, whether such changes warranted the termination of the agreement. Steps Group argued that significant changes in the business environment, including economic pressures and technological advancements, had rendered the existing agreement unsustainable. The union, on the other hand, contended that the changes were not so drastic as to justify terminating the agreement.

The Fair Work Commission examined the arguments presented by both parties. It considered the economic and technological factors cited by Steps Group and assessed whether these changes had indeed created a fundamentally different business environment. The Commission found that while there were challenges, the changes did not reach the threshold of a significant change in circumstances that would warrant terminating the agreement. The decision was based on a careful analysis of the evidence provided and the Commission's interpretation of the relevant provisions of the Fair Work Act. Ultimately, the application for termination was dismissed, and the agreement remained in effect.

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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