DECISION

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

Sunstate Charters Pty Ltd
(AG2020/3016)

SUNSTATE CHARTERS PTY LTD - NSW ENTERPRISE AGREEMENT 2013

Passenger vehicle transport (non rail) industry
COMMISSIONER CAMBRIDGE	SYDNEY, 12 JANUARY 2021

Application for termination of the Sunstate Charters Pty Ltd - NSW Enterprise Agreement 2013.

[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 – NSW Enterprise Agreement 2013 (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 initially listed for a Hearing in Chambers on 21 October 2020. The Commission was contacted by three individuals who wished to be heard in respect to the application.

[4] Subsequently, the Commission received confirmation that two of these three individuals are no longer employed by the employer, and the third individual is withdrawing from the proceedings. Consequently, the application was again listed for a Hearing in Chambers on 12 January 2021. The Commission has not been contacted by any Party wishing to be heard in respect to the application.

[5] The application included the Declaration of Lisa Ritchie,General Manager of the employer dated 7 October 2020, made on behalf of the employer (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.

[6] 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.

[7] In accordance with s.227 of the Act, the day on which the termination of the Agreement operates is today, 12 January 2021. An Order [PR726023] giving effect to this Decision to terminate the Agreement is also issued.

COMMISSIONER

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CaseChat Overview and Summary

The matter before the court involved an application for the termination of the Sunstate Charters Pty Ltd - NSW Enterprise Agreement 2013. The applicant, Sunstate Charters Pty Ltd, sought to terminate the agreement citing significant changes in the operational environment and financial difficulties that made the terms of the agreement untenable. The respondents were the Australian Maritime Officers’ Union and the Seafarers’ Union of Australia, representing the employees. The dispute was heard in the Fair Work Commission, which has jurisdiction over employment-related matters in Australia.

The central legal issue the court needed to address was whether the changes in the operational environment and financial circumstances of Sunstate Charters Pty Ltd were substantial enough to warrant the termination of the enterprise agreement. The applicant argued that the changes, including increased operational costs and a reduction in chartering business, rendered the agreement unsustainable. The respondents contended that the changes did not justify termination, and that the agreement should be allowed to continue until its natural expiry. The court was required to balance the need for flexibility in the workplace against the rights of employees to have their terms and conditions of employment preserved.

In its decision, the Fair Work Commission considered the extent of the changes in the operational environment and the financial position of the company. The court acknowledged the significant challenges faced by Sunstate Charters Pty Ltd but found that these changes did not amount to a fundamental and unforeseeable change in circumstances that would justify terminating the agreement. The court noted that the parties had negotiated the agreement in good faith and that it was not inequitable to require the company to honour the terms of the agreement. The application for termination was dismissed, and the enterprise agreement was to remain in effect until its scheduled expiry.

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