TESA Resources Pty Ltd

[2017] FWCA 6065

[2017] FWCA 6065

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

TESA Resources Pty Ltd
(AG2017/4357)

TESA RESOURCES (ALTONA AREA) CERTIFIED AGREEMENT 2003-2006

Building, metal and civil construction industries
COMMISSIONER CIRKOVIC	MELBOURNE, 20 NOVEMBER 2017

Application for termination of the TESA Resources (Altona Area) Certified Agreement 2003-2006.

[1] On 22 September 2017, TESA Resources Pty Ltd (Applicant) applied, pursuant to Schedule 3, Item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Transitional Act) to terminate the TESA Resources (Altona Area) Certified Agreement 2003-2006 (Agreement). The Agreement has passed its nominal expiry date of 31 March 2006 as specified in clause 5.

[2] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) is also covered by the Agreement.

[3] The Agreement is a collective agreement-based transitional instrument to which Items 15 and 16 of Schedule 3 of the Transitional Actapply. The effect of Items 15 and 16 of Schedule 3 of the Transitional Act is that the termination of agreement provisions found in Subdivisions C and D of Division 7 of the Fair Work Act 2009 (Act) apply to the Agreement as though a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.

[4] Section 225 of the Act provides:

“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.”

[5] Section 226 of the Act provides:

“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.”

Sub - sections 226(a) and (b)

[6] The AMWU is an organisation which is covered by the Agreement. Correspondence was received from the AMWU on 4 October 2017, advising that it did not oppose the termination of the Agreement.

[7] Since there are no employees to whom the Agreement currently applies, there are no adverse effects on those employees. The Applicant will be freed of such administrative burden that might be associated with the continued operation of the Agreement in such circumstances where no employees are engaged by it that are covered by the Agreement.

[8] Based on the material contained in the Applicant’s declaration filed with this application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in ss.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[9] The termination will operate from 20 November 2017.

COMMISSIONER

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