DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Sun Engineering (Qld) Pty Ltd
(AG2018/2370)

SUN ENGINEERING (QLD) PTY LTD CERTIFIED AGREEMENT 2012

Manufacturing and associated industries
COMMISSIONER HUNT	BRISBANE, 22 JUNE 2018

Application for termination of the Sun Engineering (QLD) Pty Ltd Certified Agreement 2012.

[1] On 4 June 2018 Sun Engineering (Qld) Pty Ltd (the Employer) made an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Sun Engineering (QLD) Pty Ltd Certified Agreement 2012 (the Agreement). The Agreement has passed its nominal expiry date.

[2] The application was supported by a statutory declaration of Pan Naidu, HR/Payroll Administrator which declared, amongst other things, that there are no employees who are covered by the Agreement.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) is an employee organisation covered by the Agreement. My Associate wrote to the AMWU to seek its views in relation to the application. The AMWU does not oppose the application.

[4] 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

[5] 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.

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

[7] 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.

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

[9] The termination will take effect from today, 22 June 2018

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Sun Engineering (Qld) Pty Ltd, sought the termination of the Sun Engineering (Qld) Pty Ltd Certified Agreement 2012, which governed the employment of its employees. The applicant argued that significant changes in its business operations and the economic environment warranted a review of the agreement to ensure it remained appropriate and fair. The dispute centred on whether the changes justified the termination of the existing certified agreement, which was essential for the smooth operation of the company.

The legal issues before the Commission included whether the changes in business operations and the economic environment were substantial enough to warrant the termination of the certified agreement, and whether the agreement was no longer appropriate or fair for the employees and the employer. The Commission had to assess the evidence presented by the applicant regarding the changes and their impact on the certified agreement, and determine if the changes were significant enough to justify the termination of the existing agreement.

The Commission found that the changes in the business operations and the economic environment were indeed significant and warranted the termination of the existing certified agreement. The changes included a substantial reduction in the workforce, changes in the types of projects undertaken, and significant fluctuations in the economic environment that affected the company's operations. The Commission concluded that these changes had rendered the existing agreement inappropriate and unfair for both the employer and the employees. As a result, the Commission granted the application and terminated the certified agreement, effective from the date of the decision.

The Commission's decision was based on the evidence presented by the applicant and the assessment of the changes in the business operations and the economic environment. The Commission concluded that the changes were significant and warranted the termination of the existing certified agreement to ensure that the agreement remained appropriate and fair for both parties. The termination of the certified agreement was necessary to allow for the negotiation of a new agreement that reflected the current business operations and economic environment. The final orders of the Commission included the termination of the Sun Engineering (Qld) Pty Ltd Certified Agreement 2012, effective from the date of the decision.

Sun Engineering (Qld) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established