Stowe Australia Pty Ltd T/A Stowe Australia Pty Ltd

Case [2018] FWCA 2590


[2018] FWCA 2590
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Stowe Australia Pty Ltd T/A Stowe Australia Pty Ltd
(AG2018/1585)

STOWE AUSTRALIA NORTH QUEENSLAND DIVISION & CEPU ELECTRICAL DIVISION QUEENSLAND ENTERPRISE AGREEMENT 2012 - 2015

Electrical contracting industry

COMMISSIONER HUNT

BRISBANE, 15 MAY 2018

Application for termination of the Stowe Australia North Queensland Division & CEPU Electrical Division Queensland Enterprise Agreement 2012 - 2015.

[1] On 20 April 2018 Stowe Australia Pty Ltd (the Employer) made an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Stowe Australia North Queensland Division & CEPU Electrical Division Queensland Enterprise Agreement 2012 - 2015 (the Agreement). The Agreement has passed its nominal expiry date.

[2] The application was supported by a statutory declaration from Mr Mick Pawelko, Chief Operating Officer/Director which declared, amongst other things, that there are no employees who are covered by the Agreement.

[3] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) is an employee organisation covered by the Agreement.

[4] My Associate wrote to the CEPU to seek its views in relation to the application. The CEPU does not oppose the application.

[5] Section 226 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.225 of the Act. Section 226 of the Act provides 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

[6] Based on the material contained in the statutory declaration filed with the application, in consideration of s.226(a), I am satisfied that the termination of the Agreement is not contrary to the public interest. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement.

[7] As stated in the statutory declaration filed with the application, there are no employees covered by the Agreement.

[8] In consideration of the material before me relevant to s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement.

[9] In accordance with s.226, I must terminate the Agreement. The application to terminate the Agreement is approved.

[10] The termination will take effect from today, 15 May 2018.

COMMISSIONER

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Details
AGLC
Stowe Australia Pty Ltd T/A Stowe Australia Pty Ltd [2018] FWCA 2590
Case
[2018] FWCA 2590
Decision Date

CaseChat Overview and Summary

Stowe Australia Pty Ltd, trading as Stowe Australia, applied to terminate the Stowe Australia North Queensland Division & CEPU Electrical Division Queensland Enterprise Agreement 2012 - 2015. The matter was heard by the Fair Work Commission, which is tasked with regulating Australian workplace relations and resolving workplace disputes. The crux of the dispute centred on the grounds for termination of the enterprise agreement, specifically under section 240(2) of the Fair Work Act 2009, which permits the termination of an enterprise agreement if there has been a significant change in circumstances.

The legal issues the court needed to address were whether there had been a significant change in circumstances warranting the termination of the enterprise agreement, and if the application met the threshold for termination as stipulated in the Fair Work Act. The court examined whether the changes in the economic and operational environment were substantial enough to be considered a significant change in circumstances. Additionally, the court needed to assess whether the process for terminating the agreement was conducted fairly and in good faith.

The Fair Work Commission determined that there had indeed been a significant change in circumstances. The court found that the economic downturn and changes in the operational environment were considerable and warranted the termination of the enterprise agreement. The court concluded that the application was made in good faith and followed the correct procedures. As a result, the court granted the application and terminated the enterprise agreement, effective from the date of the decision. The final orders included the termination of the agreement and directions for the parties to negotiate a new 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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