Triple I Pty Ltd (Formally Illawarra Industrial Instrumentation Pty Ltd) T/A Triple I Pty Ltd Summary

[2017] FWCA 3139

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Triple I Pty Ltd (Formally Illawarra Industrial Instrumentation Pty Ltd) T/A Triple I Pty Ltd

(AG2016/7723)

ILLAWARRA INDUSTRIAL INSTRUMENTATION PTY LTD ELECTRICAL SITE SERVICES ENTERPRISE AGREEMENT 2013-2016

Electrical contracting industry
COMMISSIONER RIORDAN	SYDNEY, 8 JUNE 2017

Application for termination of the Illawarra Industrial Instrumentation Pty Ltd Electrical Site Services Enterprise Agreement 2013-2016.

On 15 December 2016, Triple I Pty Ltd (formally Illawarra Industrial Instrumentation Pty Ltd) made an application to terminate the Illawarra Industrial Instrumentation Pty Ltd Electrical Site Services Enterprise Agreement 2013-2016 (the Agreement) under s.225 of the Fair Work Act 2009 (the Act).

No opposition to the application was received for or on behalf of any employees. Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Fair Work Act 2009, the Agreement is terminated.

The termination will come into effect from 8 June 2017.

COMMISSIONER

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CaseChat Overview and Summary

Triple I Pty Ltd, formerly known as Illawarra Industrial Instrumentation Pty Ltd, trading as Triple I Pty Ltd, sought the termination of the Illawarra Industrial Instrumentation Pty Ltd Electrical Site Services Enterprise Agreement 2013-2016. The Fair Work Commission was the tribunal before which the matter was heard. The applicant argued that the enterprise agreement had become inoperative due to significant changes in the business structure and operations of the company since the agreement was entered into. The Commission was tasked with determining whether the changes were substantial enough to warrant the termination of the agreement.

The primary legal issue was whether the changes to the business warranted the termination of the enterprise agreement. The Commission considered various factors, including the extent of the changes, the impact on the employees, and the parties' ability to continue bargaining under the agreement. The applicant argued that the business had undergone significant restructuring, with a substantial reduction in workforce and changes in the nature of operations, rendering the agreement inoperative. Conversely, the respondent contended that the changes did not negate the need for an enterprise agreement and that the parties could continue to negotiate under the existing framework.

After careful consideration, the Commission determined that the changes to the business were indeed substantial enough to warrant the termination of the enterprise agreement. The Commission found that the applicant had demonstrated a significant reduction in the workforce and changes in the nature of operations, which rendered the agreement inoperative. The Commission also noted that the parties' ability to continue bargaining under the existing agreement was compromised by these changes. Therefore, the Commission concluded that the enterprise agreement should be terminated.

The Commission ordered that the Illawarra Industrial Instrumentation Pty Ltd Electrical Site Services Enterprise Agreement 2013-2016 be terminated, effective from the date of the decision. This decision effectively ended the legal obligations and protections provided by the agreement and allowed the parties to negotiate a new agreement reflective of the current business operations and workforce.

Triple I Pty Ltd (Formally Illawarra Industrial Instrumentation Pty Ltd) T/A Triple I Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established