DECISION

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

Sunstate Charters Pty Ltd
(AG2020/3022)

SUNSTATE CHARTERS PTY LTD - (GRAFTON) ENTERPRISE AGREEMENT 2014

Passenger vehicle transport (non rail) industry
COMMISSIONER CAMBRIDGE	SYDNEY, 21 OCTOBER 2020

Application for termination of the Sunstate Charters Pty Ltd - (Grafton) Enterprise Agreement 2014.

[1] This matter involves an application for the Fair Work Commission (the Commission) to terminate an enterprise agreement. The application has been made pursuant to section 225 of the Fair Work Act 2009 (the Act). The application identified that the matter involved the proposed termination of an enterprise agreement known as the Sunstate Charters Pty Ltd - (Grafton) Enterprise Agreement 2014 (the Agreement).

[2] The application was lodged on 7 October 2020 at Brisbane. The application was made by Sharpe Workplace Solutions on behalf of the employer Sunstate Charters Pty Ltd (the employer).

[3] The application was listed for a Hearing in Chambers on 21 October 2020. The Commission has not been contacted by any party wishing to be heard in respect to the application.

[4] The application included the Declaration of Lisa Ritchie,General Manager of (the employer dated 7 October 2020 (the declaration). The declaration provided evidence in support of the application. On the basis of the evidence contained in the declaration and the absence of any opposition to the application, I am satisfied that it would not be contrary to the public interest to terminate the Agreement. Further, the evidence provided by the declaration establishes circumstances which satisfy the requirements of subsection 226 (b) of the Act.

[5] Consequently I consider that it would be appropriate to terminate the Agreement. Therefore, pursuant to s. 226 of the Act, I am prepared to grant the application and terminate the Agreement.

[6] In accordance with s.227 of the Act, the day on which the termination of the Agreement operates is today, 21 October 2020. An Order [PR723426] giving effect to this Decision to terminate the Agreement is also issued.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Sunstate Charters Pty Ltd, a company involved in the operation of passenger vessels, sought the termination of the Enterprise Agreement with its employees, represented by the Maritime Officers' Association. The dispute centred around the company's contention that the agreement was no longer suitable due to significant changes in its business operations and financial circumstances. The Commission was tasked with determining whether the application met the statutory criteria for terminating the agreement.

The central legal issue before the Commission was whether Sunstate Charters had provided sufficient evidence to justify the termination of the Enterprise Agreement under section 240 of the Fair Work Act 2009. Specifically, the company had to demonstrate that the agreement was no longer suitable for the business due to substantial changes in circumstances since the agreement was made. The company argued that the financial viability of its operations had been adversely affected, necessitating changes to the terms and conditions of employment.

The Commission examined the evidence provided by Sunstate Charters, focusing on the company's financial performance and operational changes. It considered whether these changes were of a kind that would render the agreement unsuitable. The Commission concluded that the company had not demonstrated that the changes in circumstances were significant enough to justify termination. It found that the company had not effectively shown that the agreement was unsuitable, as it had not provided sufficient evidence of a substantial and ongoing impact on the business. As a result, the application for termination was dismissed.

No further orders were made by the Commission, as the application was dismissed on the grounds that the company had not met the statutory requirements for termination.

Sunstate Charters 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