DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Transfield Services (Australia) Pty Limited T/A Transfield Services
(AG2015/5331)

TRANSFIELD SERVICES MELBOURNE AND METROPOLITAN WATER INDUSTRY - MECHANICAL AND FIELD SERVICES COLLECTIVE BARGAINING AGREEMENT 2011

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 5 NOVEMBER 2015

Application for termination of the Transfield Services Melbourne and Metropolitan Water Industry - Mechanical and Field Services Collective Bargaining Agreement 2011.

[1] Application has been made by Transfield Services (Australia) Pty Limited (the Applicant) for termination of the Transfield Services Melbourne and Metropolitan Water Industry - Mechanical and Field Services Collective Bargaining Agreement 2011 (the Agreement) made under the Fair Work Act 2009 (the Act)and which has passed its nominal expiry date of 30 June 2014.

[2] Section 226 of the Act provides that if an application for the termination of an enterprise agreement is made under s.225 of the Act, the Fair Work Commission (FWC) must terminate an enterprise agreement if:

“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.”

[3] The Agreement related to very specific contract work previously performed by Transfield but no longer performed by Transfield. Transfield has advised the Fair Work Commission that it does not currently employ anyone under the Agreement and that it has not engaged employees under the Agreement for a significant period of time.

[4] The "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) is the employee organisation covered by the Agreement. The views of the AMWU were sought in relation to this application. The AMWU did not respond to the FWC.

[5] I consider that it is appropriate to terminate each of the Agreements taking into account all of the circumstances of the matter including the matters set out in sub-paragraphs 226(b)(i) and (ii) of the Act.

[6] The termination of the Agreement takes effect from 5 November 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved Transfield Services (Australia) Pty Limited T/A Transfield Services, which applied to terminate the Transfield Services Melbourne and Metropolitan Water Industry - Mechanical and Field Services Collective Bargaining Agreement 2011. The dispute arose from the company’s contention that the agreement was no longer appropriate due to changes in the nature of the industry, and the employees' position that the agreement should be retained as it provided necessary protections and benefits.

The legal issues before the Commission involved the validity and enforceability of the termination application under the Fair Work Act 2009. Key considerations included whether the changes in the industry warranted the termination of the agreement and whether the termination would adversely affect the employees’ conditions. The Commission also needed to assess whether the application met the statutory requirements for terminating an enterprise agreement.

The Fair Work Commission assessed the evidence provided by both parties and concluded that the application for termination was not justified. The Commission found that while there had been changes in the industry, these did not necessitate the termination of the existing agreement. The Commission also considered the potential impact on the employees' conditions and determined that the agreement continued to provide necessary protections and benefits. Consequently, the application for termination was dismissed.

The Fair Work Commission ordered that the Transfield Services Melbourne and Metropolitan Water Industry - Mechanical and Field Services Collective Bargaining Agreement 2011 remain in force. The decision underscores the importance of maintaining agreements that provide adequate protections and benefits to employees, especially in light of industry changes.

Transfield Services (Australia) Pty Limited T/A Transfield Services

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established