| [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
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- AGLC
- Total AMS Pty Ltd [2017] FWCA 467
- Case
- [2017] FWCA 467
- Decision Date
CaseChat Overview and Summary
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
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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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