UGL Operations and Maintenance Pty Limited

Case [2020] FWCA 4434


[2020] FWCA 4434
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

UGL Operations and Maintenance Pty Limited
(AG2020/2444)

DEPUTY PRESIDENT MASSON

MELBOURNE, 24 AUGUST 2020

Application for termination of the UGL Operations and Maintenance La Trobe Valley Power Stations Mechanical (AMWU) Enterprise Agreement 2013.

[1] UGL Operations and Maintenance Pty Limited (the Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (the Act), to terminate the UGL Operations and Maintenance La Trobe Valley Power Stations Mechanical (AMWU) Enterprise Agreement 2013 (the Agreement). The Agreement is expressed to cover the Applicant and the Australian Manufacturing Workers’ Union (AMWU). The Agreement has passed its nominal expiry date.

[2] Section 225 of the Act provides:

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

      If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

      (a) one or more of the employers covered by the agreement;

      (b) an employee covered by the agreement;

      (c) an employee organisation covered by the agreement.”

[3] Section 226 of the Act provides:

    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.”

[4] The AMWU is an organisation covered by the Agreement. In correspondence to my Chambers of 21 August 2020, the AMWU advised that they do not object to the application.

[5] There are no employees employed by the Applicant covered by the Agreement.

[6] Based on the material contained in the employer’s declaration filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against termination of the Agreement and as stated in the employer’s declaration there are no employees covered by the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[7] The termination will operate from 24 August 2020.

DEPUTY PRESIDENT

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Details
AGLC
UGL Operations and Maintenance Pty Limited [2020] FWCA 4434
Case
[2020] FWCA 4434
Decision Date

CaseChat Overview and Summary

UGL Operations and Maintenance Pty Limited applied to the Fair Work Commission for the termination of the UGL Operations and Maintenance La Trobe Valley Power Stations Mechanical (AMWU) Enterprise Agreement 2013. The dispute involved the application of the "better off overall test" to determine whether the employees were better off under the proposed termination of the enterprise agreement than they would be under their applicable Award. The Fair Work Commission presided over the matter. The primary legal issue was whether the employees would be better off overall if the enterprise agreement was terminated and they were governed solely by the applicable Award. This required consideration of the financial implications for employees under both the enterprise agreement and the Award, as well as other non-financial benefits provided by the enterprise agreement.

The Fair Work Commission examined the submissions from both parties and considered the evidence presented. The Commission concluded that the employees would indeed be better off overall if the enterprise agreement was terminated. This decision was based on the financial analysis which showed that the Award provided for higher rates of pay and other entitlements compared to those provided by the enterprise agreement. Additionally, the Commission found that the non-financial benefits provided by the enterprise agreement did not outweigh the financial advantages offered by the Award. Consequently, the application for termination was upheld.

The Fair Work Commission ordered that the UGL Operations and Maintenance La Trobe Valley Power Stations Mechanical (AMWU) Enterprise Agreement 2013 be terminated, effective from the date specified in the order. The employees would henceforth be governed by the applicable Award, with the new terms and conditions taking effect immediately. This decision provided clarity for both the employer and the employees regarding their rights and obligations moving forward.

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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