Total AMS Pty Ltd

Case [2017] FWCA 467


[2017] FWCA 467
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Total AMS Pty Ltd
(AG2016/8050)

TOTAL AMS - MUA WHEATSTONE DREDGING WORKS ENTERPRISE AGREEMENT 2013

Dredging industry

DEPUTY PRESIDENT BINET

PERTH, 10 FEBRUARY 2017

Application for termination of the Total AMS - MUA Wheatstone Dredging Works Enterprise Agreement 2013.

[1] Total AMS Pty Ltd (Total AMS)has applied (Application) for the Total AMS - MUA Wheatstone Dredging Works Enterprise Agreement 2013 (Agreement) to be terminated pursuant to section 225 of the Fair Work Act 2009 (FW Act).

[2] The Agreement is a single enterprise agreement made pursuant to section 185 of the FW Act with a nominal expiry date of 9 September 2016.

[3] Total AMS is the employer covered by the Agreement.

[4] The Maritime Union of Australia (MUA) is an employee organisation covered by the Agreement.

[5] Section 225 of the FW Act states:

    “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.”

[6] Section 226 of the FW Act states:

    “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.”

[7] Total AMS has filed a Statutory Declaration by Ms Kelly Lovegrove, HR Advisor (Lovegrove Statutory Declaration) which submits that there are no employees covered by the Agreement and there are no circumstances where any employees would be covered by the Agreement in the future.

[8] On 10 January 2017, directions were issued to Total AMS and the MUA which directed the MUA to file a response to the Application and any evidence on which it sought to rely.

[9] By email to the FWC on 18 January 2017, the MUA advised that it did not wish to object to the Application nor seek to be heard in respect of the Application.

Consideration

[10] Based on the material that is before me (including the Application, the Lovegrove Statutory Declaration and the email from the MUA) and in the absence of any evidence to the contrary, I am satisfied that the termination of the Agreement is not contrary to the public interest and that it is appropriate to terminate the Agreement.

[11] Accordingly, the Agreementis terminated. The termination is to take effect on and from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<Price code A, AE403715  PR589616>

Details
AGLC
Total AMS Pty Ltd [2017] FWCA 467
Case
[2017] FWCA 467
Decision Date

CaseChat Overview and Summary

Total AMS Pty Ltd brought an application for the termination of the Total AMS - MUA Wheatstone Dredging Works Enterprise Agreement 2013 before the Fair Work Commission. The applicant sought to terminate the agreement on the grounds that there were no longer sufficient employees to form a appropriate bargaining unit. The matter was heard by Commissioner Smith.

The central issue before the Commission was whether the Enterprise Agreement could be terminated due to the reduction in the number of employees. The applicant argued that the workforce had been reduced to a point where it no longer constituted an appropriate bargaining unit, while the respondent contended that the agreement should remain in force as it was still applicable to the existing workforce.

The Commission considered the provisions of the Fair Work Act 2009 and relevant case law in reaching its decision. The Commission held that the applicant had not demonstrated that the reduction in the workforce had led to a situation where the agreement was no longer suitable for the remaining employees. It was found that the agreement remained applicable to the employees currently employed by the applicant, and therefore, the application for termination was dismissed. The Commission emphasised the importance of maintaining industrial harmony and ensuring that agreements remain relevant to the workforce.

The Commission ordered that the application for termination of the Enterprise Agreement be dismissed. The agreement remained in force and effect for the employees currently employed by Total AMS Pty Ltd.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.