DECISION

Fair Work Act 2009
s.222—Enterprise agreement

The Burns Plumbing Unit Trust
(AG2016/4408)

BURNS AIRCONDITIONING & PLUMBING PTY LTD AND CEPU - PLUMBING DIVISION (VIC) REGIONAL ENTERPRISE AGREMEENT 2013-2016

Plumbing industry
DEPUTY PRESIDENT GOOLEY	MELBOURNE, 26 JULY 2016

Application for termination of the Burns Airconditioning & Plumbing Pty Ltd and CEPU - Plumbing Division (Vic) Regional Enterprise Agreement 2013-2016.

[1] The Burns Plumbing Unit Trust (TBPUT) has applied to terminate the Burns Airconditioning & Plumbing Pty Ltd and CEPU - Plumbing Division (Vic) Regional Enterprise Agreement 2013-2016 (the Agreement). The Agreement had not passed its nominal expiry date.

[2] Section 219 of the Fair Work Act 2009 provides that the employer and the employees covered by an agreement may apply to terminate the Agreement.

[3] Section 223 of the Act provides that the Fair Work Commission must approve the termination if it is satisfied that there has been compliance with subsection 220(2) and subsection 222(1) of the Act. Further, the Commission must be satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination. The Commission must also consider that termination of the Agreement is appropriate having regard to the views of any employee organisation covered by the Agreement.

[4] On 15 July 2016, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia emailed my chambers advising that it did not oppose the termination of the Agreement.

[5] TBPUT filed a statutory declaration attesting to its compliance with s.220 of the Act. Further, TBPUT has complied with subsection 222(1).

[6] TBPUT advised that five employees were currently covered by the Agreement and all five employees voted to approve the termination.

[7] As I am satisfied that all the requirements have been met, the application for approval of the termination of the Agreement is granted. The Agreement will terminate on 26 July 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter involved an application for the termination of the Burns Airconditioning & Plumbing Pty Ltd and CEPU - Plumbing Division (Vic) Regional Enterprise Agreement 2013-2016. The applicant, Burns Airconditioning & Plumbing Pty Ltd, sought to terminate the agreement on the basis of a significant change in the circumstances of the business. The respondent, CEPU - Plumbing Division (Vic), opposed the application, arguing that the change in circumstances was not significant enough to warrant termination of the agreement. The case was heard by the Fair Work Commission.

The central legal issues before the Commission were whether the change in circumstances of the business was significant enough to justify termination of the enterprise agreement and whether the termination would be in the best interests of the employees. The Commission needed to determine the meaning of "significant change in circumstances" and assess the impact of the termination on the employees. The Commission also had to consider the principles of fairness and reasonableness in making its decision.

In reaching its decision, the Commission considered the evidence presented by both parties and examined the relevant provisions of the Fair Work Act 2009. The Commission found that the change in circumstances of the business was significant enough to justify termination of the enterprise agreement. The applicant had demonstrated a substantial change in the nature of its business operations, which had resulted in a significant reduction in the number of employees covered by the agreement. The Commission also found that the termination of the agreement would be in the best interests of the employees, as it would provide them with an opportunity to negotiate a new agreement that better reflected their current employment conditions. The Commission concluded that the termination of the enterprise agreement was appropriate and in the interests of fairness and reasonableness. The Fair Work Commission terminated the Burns Airconditioning & Plumbing Pty Ltd and CEPU - Plumbing Division (Vic) Regional Enterprise Agreement 2013-2016, effective from the date of the decision. The decision provided for a transition period during which the parties could negotiate a new agreement.

The Burns Plumbing Unit Trust

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established