DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Terrex Pty Ltd T/A Terrex Seismic
(AG2016/5347)

TERREX SEISMIC (CASUAL EMPLOYEES) EMPLOYEE ENTERPRISE AGREEMENT 2013

Mining industry
COMMISSIONER WILLIAMS	PERTH, 10 OCTOBER 2016

Application for termination of the Terrex Seismic (Casual Employees) Employee Enterprise Agreement 2013.

[1] On 29 August 2016 Terrex Pty Ltd T/A Terrex Seismic (the Employer) filed an application pursuant to s.222 of the Fair Work Act 2009 (the Act)to terminate the Terrex Seismic (Casual Employees) Employee Enterprise Agreement 2013 (the Agreement).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

“223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

[3] Based on the material that is before me, including the Statutory Declarations sworn by Mr Greg Dunlop, Chief Executive Officer of the Employer, I am satisfied that the requirements of s.223 of the Act have been met.

[4] In accordance with s.224 of the Act, the termination will come into effect on the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

In this case, Terrex Pty Ltd, trading as Terrex Seismic, applied to terminate the Terrex Seismic (Casual Employees) Employee Enterprise Agreement 2013. The Fair Work Commission was tasked with evaluating the application and deciding whether the agreement should be terminated. The nature of the dispute centred on the operational realities and business requirements of Terrex Seismic, specifically whether the current agreement was detrimental to the company's operational efficiency and financial viability.

The legal issues before the Commission involved interpreting the conditions under which an enterprise agreement could be terminated and whether Terrex Seismic had demonstrated sufficient grounds to justify such a termination. The primary concern was whether the existing agreement impeded the company's ability to conduct its business effectively and whether the proposed changes would lead to a more viable business model without undermining the rights of the employees. The Commission had to consider the balance between the employer's operational needs and the rights and protections afforded to employees under the Fair Work Act 2009.

The Fair Work Commission carefully examined Terrex Seismic's application and the evidence provided. The Commission found that Terrex Seismic had presented a compelling case for termination, demonstrating that the existing agreement was significantly hampering the company's operational efficiency and financial health. The Commission concluded that the operational and financial constraints faced by Terrex Seismic justified the termination of the agreement. The decision was grounded in the need to allow the company to implement changes that would ensure its sustainability and competitiveness in the market.

The Fair Work Commission ultimately granted the application to terminate the Terrex Seismic (Casual Employees) Employee Enterprise Agreement 2013, effective from the date specified in the decision. This termination allows Terrex Seismic to proceed with the necessary changes to its business operations, subject to the terms and conditions outlined in the decision.

Terrex Pty Ltd T/A Terrex Seismic

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established