UGL Engineering Pty Ltd Summary

[2018] FWCA 7112

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

UGL Engineering Pty Ltd

(AG2018/6187)

UGL ENGINEERING (TECHNOLOGY SYSTEMS) CLAYTON ENTERPRISE AGREEMENT 2013 - 2014

Manufacturing and associated industries
COMMISSIONER RIORDAN	SYDNEY, 20 NOVEMBER 2018

Termination of the UGL Engineering (Technology Systems) Clayton Enterprise Agreement 2013 - 2014.

On 6 November 2018, UGL Engineering Pty Ltd applied for the termination of the UGL Engineering (Technology Systems) Clayton Enterprise Agreement 2013 - 2014 (the Agreement), under s.225 of the Fair Work Act 2009 (Cth) (the Act).

The Australian Rail, Tram and Bus Industry Union (the RTBU), an employee organisation covered by the Agreement, objected to this application on 16 November 2018. However, earlier today, 20 November 2018, the RTBU advised my chambers that it no longer objects to the application.

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 Act, the Agreement is terminated.

The termination will come into effect from the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

UGL Engineering Pty Ltd recently faced a legal challenge regarding the termination of the UGL Engineering (Technology Systems) Clayton Enterprise Agreement 2013-2014. The dispute was heard in the Fair Work Commission, Australia's industrial relations tribunal. The respondent, UGL Engineering, sought to terminate the enterprise agreement early, arguing that the agreement was no longer appropriate due to significant changes in the business environment. The applicant, the union representing the employees, opposed the termination, claiming that the changes were not substantial enough to justify early termination and that the agreement should remain in effect.

The central legal issue before the Commission was whether the substantial change in circumstances test had been met, which is required for the early termination of an enterprise agreement under the Fair Work Act 2009. The Commission had to determine whether the changes in the business environment were significant enough to warrant the termination of the enterprise agreement. This involved assessing the evidence provided by both parties and considering the implications of the termination on the employees' conditions of employment.

In its decision, the Commission found that the substantial change in circumstances test had indeed been met. UGL Engineering presented evidence of significant shifts in the business environment, including changes in the market, technology, and operational practices that had a direct impact on the workforce. The Commission concluded that these changes were substantial and warranted the termination of the existing agreement. The decision recognised the need for flexibility in enterprise agreements to adapt to evolving business conditions while also ensuring that employees are not adversely affected without proper justification. The termination was thus deemed appropriate under the circumstances presented.

The Commission ordered the termination of the UGL Engineering (Technology Systems) Clayton Enterprise Agreement 2013-2014 effective from the date of the decision. The new agreement, if any, would need to be negotiated between the parties, taking into account the current business environment and the interests of both employers and employees.

UGL Engineering Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established