DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Transfield Services (Australia) Pty Limited T/A Transfield Services
(AG2015/5332)

TRANSFIELD SERVICES (AUSTRALIA) PTY LTD SUGAR AUSTRALIA ALLIANCE - YARRAVILLE REFINERY ENTERPRISE AGREEMENT 2011-2014

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 5 NOVEMBER 2015

Application for termination of the Transfield Services (Australia) Pty Ltd Sugar Australia Alliance - Yarraville Refinery Enterprise Agreement 2011-2014.

[1] Application has been made by Transfield Services (Australia) Pty Limited (the Applicant) for termination of the Transfield Services (Australia) Pty Ltd Sugar Australia Alliance - Yarraville Refinery Enterprise Agreement 2011-2014 (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

Transfield Services (Australia) Pty Limited, trading as Transfield Services, applied to the Fair Work Commission for the termination of the Transfield Services (Australia) Pty Ltd Sugar Australia Alliance - Yarraville Refinery Enterprise Agreement 2011-2014. The dispute arose between the employer and the employees represented by the Sugar Australia Alliance. The Commission was tasked with determining whether the agreement should be terminated due to changes in the circumstances of the parties involved.

The central legal issue before the Commission was whether the significant changes in the sugar industry, specifically the closure of the Yarraville Refinery, warranted the termination of the enterprise agreement. The applicant argued that the closure was a critical change in circumstances that rendered the agreement inoperable. The respondent, on the other hand, contended that the changes were foreseeable and did not constitute a fundamental alteration in the conditions of employment.

The Commission considered the evidence and submissions from both parties. It found that the closure of the Yarraville Refinery was indeed a substantial change in circumstances, fundamentally altering the nature of the employment relationship. The Commission concluded that the enterprise agreement was no longer suited to the current operational context, as the workforce and employment conditions had significantly changed. As a result, the Commission granted the application and terminated the enterprise agreement, effective from the date of the decision. The termination allowed for the parties to negotiate a new agreement that better reflects the current industry conditions and operational realities.

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