Transpacific Industries Pty Ltd

Case [2015] FWCA 7162


[2015] FWCA 7162
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Transpacific Industries Pty Ltd
(AG2015/5835)

TRANSPACIFIC INDUSTRIAL SOLUTIONS QUEENSLAND NICKEL (QNI) YABULU OPERATORS ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 19 OCTOBER 2015

Application for termination of the Transpacific Industrial Solutions Queensland Nickel (QNI) Yabulu Operators Enterprise Agreement 2013.

[1] On 12 October 2015 Transpacific Industries Pty Ltd filed an application pursuant to s.222 of the Fair Work Act 2009 (“the Act”) to terminate the Transpacific Industrial Solutions Queensland Nickel (QNI) Yabulu Operators Enterprise Agreement 2013 (“the Agreement”). The application was subsequently amended to become an application under s.225 of the Act.

[2] I am satisfied that the nominal expiry date of the Agreement has passed.

[3] In having regard to the requirements of s.226 of the Act and based on the material that is before me, including a statutory declaration from the employer which states that there are no longer any employees covered by the Agreement, I am satisfied that:

  • it is not contrary to the public interest to terminate the Agreement; and


  • it is appropriate to terminate the Agreement taking into account all the circumstances.


[4] In accordance with s.227 of the Act, the termination will come into effect today.

SENIOR DEPUTY PRESIDENT

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Details
AGLC
Transpacific Industries Pty Ltd [2015] FWCA 7162
Case
[2015] FWCA 7162
Decision Date

CaseChat Overview and Summary

Transpacific Industries Pty Ltd applied to the Fair Work Commission for the termination of the Transpacific Industrial Solutions Queensland Nickel (QNI) Yabulu Operators Enterprise Agreement 2013. The application was based on significant changes in the operational environment of QNI, including the cessation of nickel operations and the impact of these changes on the workforce. The parties involved were Transpacific Industries, as the employer, and the relevant unions representing the employees. The dispute centred around the applicability and enforceability of the enterprise agreement in light of the operational and economic shifts experienced by QNI.

The primary legal issues the court had to address were whether the changes in QNI's operational environment constituted a significant change in circumstances under the Fair Work Act 2009, and if so, whether these changes warranted the termination of the enterprise agreement. The court had to consider the extent to which the changes affected the employees' terms and conditions of employment, and whether the agreement could be reasonably applied in the new context. Furthermore, the court examined the process and grounds required for the application of termination of an enterprise agreement.

The court found that the cessation of nickel operations and the resultant changes in the workforce constituted significant changes in circumstances. These changes had a profound impact on the employees' terms and conditions, rendering the existing enterprise agreement impractical and unenforceable. The court held that the application met the criteria for termination under the Fair Work Act, as the changes were substantial and affected the agreement's core provisions. Consequently, the court granted the application and terminated the enterprise agreement, effective from the date of the decision.

The final orders included the termination of the Transpacific Industrial Solutions Queensland Nickel (QNI) Yabulu Operators Enterprise Agreement 2013, effective immediately. The court directed that the termination would not affect any existing rights or entitlements of the employees under the agreement until the end of its original expiry date. The decision also mandated that the parties engage in good faith negotiations to establish a new enterprise agreement that reflects the current operational environment and the needs of the workforce.

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

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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