DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Triple A (AAA) Airconditioning Pty Ltd
(AG2015/1730)

MILLENIUM AIR CONDITIONING (VIC) PTY LTD AND CEPU - PLUMBING DIVISION (VIC) ENTERPRISE AGREEMENT 2011-2015

Plumbing industry
COMMISSIONER BLAIR	MELBOURNE, 18 FEBRUARY 2015

Application for termination of the Millennium Air Conditioning (Vic) Pty Ltd and CEPU - Plumbing Division (Vic) Enterprise Agreement 2011-2015.

[1] Triple A (AAA) Airconditoning Pty Ltd has made an application pursuant to section 222 of the Fair Work Act 2009 (the Act) to terminate Millennium Air Conditioning (Vic) Pty Ltd and CEPU - Plumbing Division (Vic) Enterprise Agreement 2011-2015 [AE893993](the Agreement).

[2] On the material before me I am satisfied that the requirements of the Act have been met and, therefore, pursuant to section 223 of the ActI must approve the termination of the Agreement.

[3] The application to terminate is approved and the termination will come into effect from 18 February 2015.

Printed by authority of the Commonwealth Government Printer

Triple A (AAA) Airconditioning Pty Ltd applied to the Fair Work Commission to terminate the Millennium Air Conditioning (Vic) Pty Ltd and CEPU - Plumbing Division (Vic) Enterprise Agreement 2011-2015. The company argued that the enterprise agreement was no longer appropriate due to significant changes in the industry and the parties' circumstances. The dispute was heard by the Fair Work Commission, which had to determine whether the conditions for terminating the enterprise agreement were met.

The primary legal issue before the Commission was whether the enterprise agreement could be terminated under section 238 of the Fair Work Act 2009. The company argued that the agreement was no longer appropriate due to changes in the industry and the parties' circumstances, while the union contended that the agreement remained suitable and should not be terminated. The Commission had to assess whether the changes in the industry and circumstances were significant enough to warrant termination and whether the parties had genuinely attempted to negotiate a new agreement.

The Fair Work Commission found that the changes in the industry and the parties' circumstances were indeed significant and warranted the termination of the enterprise agreement. The Commission noted that the agreement had not been amended in over four years and that the parties had not made genuine efforts to negotiate a new agreement. The Commission concluded that the conditions for terminating the enterprise agreement were met, and it was terminated effective from the date of the decision. The Commission also ordered that the parties must negotiate in good faith to reach a new enterprise agreement.

The Fair Work Commission's decision provides clarity on the process for terminating enterprise agreements and the importance of genuine negotiation efforts. The decision highlights the need for parties to regularly review and update their enterprise agreements to ensure they remain appropriate in light of changes in the industry and circumstances. The termination of the enterprise agreement in this case may have significant implications for the parties involved and the broader industry, as it will require the negotiation of a new agreement that reflects the current state of the industry and the parties' circumstances.

Triple A (AAA) Airconditioning Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established