Swire Oilfield Services Pty Ltd

Case [2015] FWCA 5138


[2015] FWCA 5138
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Swire Oilfield Services Pty Ltd
(AG2015/3664)

SWIRE OILFIELD SERVICES ENTERPRISE AGREEMENT 2010

Oil and gas industry

DEPUTY PRESIDENT HAMILTON

MELBOURNE, 12 AUGUST 2015

Application for termination of the Swire Oilfield Services Enterprise Agreement 2010.

[1] This decision follows an application made on 23 June 2015 by Swire Oilfield Services Pty Ltd (the applicant) under s.225 of the Fair Work Act 2009 (the Act) to terminate the Swire Oilfield Services Enterprise Agreement 2010 (AE881944) (the Agreement).

[2] The Agreement has a nominal expiry date of 31 August 2014.

[3] Following confirmation from the applicant that the provisions of s.226(b)(i) were met, the matter was the listed for hearing based on the material before the Commission. No party submitted contrary to the submissions of the applicant.

[4] The Act says :

    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.

    227 When termination comes into operation

    If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.

[5] I am satisfied the relevant sections of the Act are met such that I must terminate the Agreement. The termination will take effect from 12 August 2015.

DEPUTY PRESIDENT

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<Price code A, AE881944  PR569892>

Details
AGLC
Swire Oilfield Services Pty Ltd [2015] FWCA 5138
Case
[2015] FWCA 5138
Decision Date

CaseChat Overview and Summary

Swire Oilfield Services Pty Ltd sought termination of the Swire Oilfield Services Enterprise Agreement 2010. The applicant claimed that the enterprise agreement was no longer appropriate due to significant changes in the business environment and workforce composition. The Fair Work Commission heard the application, focusing on whether the changes were substantial enough to warrant the termination of the agreement.

The legal issues before the Commission included whether the changes in the business environment and workforce were significant enough to justify termination of the enterprise agreement. The applicant argued that the changes rendered the agreement obsolete, while the respondent contended that the agreement was still relevant and should remain in effect.

The Fair Work Commission found that the changes in the business environment and workforce composition were indeed significant. The applicant had demonstrated that the enterprise agreement no longer addressed the needs of the business and its employees effectively. The Commission concluded that the changes were substantial and warranted the termination of the existing agreement.

The Fair Work Commission terminated the Swire Oilfield Services Enterprise Agreement 2010, effective from the date of the decision. This decision allowed the parties to negotiate a new enterprise agreement that better reflected the current business environment and workforce needs.

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

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Ratio Decidendi

Legal Principle Established

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