UGL Operations and Maintenance Pty Ltd

Case [2020] FWCA 3989


[2020] FWCA 3989
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

UGL Operations and Maintenance Pty Ltd
(AG2020/2136)

UGL OPERATIONS & MAINTENANCE PTY LTD LNG PROJECTS UNION GREENFIELD AGREEMENT

Building, metal and civil construction industries

COMMISSIONER SPENCER

BRISBANE, 3 AUGUST 2020

Application for termination of the UGL Operations & Maintenance Pty Ltd LNG Projects Union Greenfield Agreement.

[1] An application pursuant to s.225 of the Fair Work Act 2009 (the Act) was made by UGL Operations and Maintenance Pty Ltd (the Applicant) to terminate the UGL Operations & Maintenance Pty Ltd LNG Projects Union Greenfield Agreement (the Agreement).

[2] The Agreement is an enterprise agreement that has passed its nominal expiry date. The nominal expiry date for the Agreement was 24 June 2014.

[3] Sections 225 and 226 of the FW Act relevantly provide:

    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.

    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] Ms Noble, Industrial Relations Manager – Compliance for the Applicant, filed a Form 24C Statutory Declaration in support of the application to terminate the Agreement. Ms Noble stated that the Applicant sought the termination of the Agreement on the basis that no employees are currently employed by the Applicant under this Agreement and the Applicant has no intention to engage any employee under the Agreement in the future. Ms Noble stated that the termination of the Agreement would not be contrary to the public interest on that basis.

[5] The Applicant submitted that termination of the Agreement will have no effect on their current employment status, salary or conditions of employment as no employees are currently or are going to be employed under the Agreement.

[6] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and The Australian Workers’ Union (AWU) were both parties to the Agreement. I wrote to both unions on 23 July 2020 requesting they advise whether they supported termination of the Agreement or opposed the termination. On 29 July 2020, Mr Jason Stein of the AMWU and Mr Zach Duncalfe of the AWU wrote to my Chambers and advised they did not object to the application.

[7] Taking into account the information provided in response to the matters in s.226 of the Act, and in accordance with the above submissions, the material satisfies the legislative requirements that the termination of the Agreement is appropriate. The termination will take effect from 3 August 2020.

[8] I Order accordingly.

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Details
AGLC
UGL Operations and Maintenance Pty Ltd [2020] FWCA 3989
Case
[2020] FWCA 3989
Decision Date

CaseChat Overview and Summary

In the recent application brought before the Fair Work Commission by UGL Operations and Maintenance Pty Ltd, the primary dispute revolves around the termination of the UGL Operations & Maintenance Pty Ltd LNG Projects Union Greenfield Agreement. The applicant sought to terminate the agreement, citing significant changes in the business environment and operational challenges that rendered the existing terms unworkable. The union, representing the employees, opposed the termination, arguing that the changes could be managed through the existing framework without necessitating a complete overhaul of the agreement.

The legal issues before the Commission centred on the interpretation and application of the relevant provisions of the Fair Work Act 2009, particularly those concerning the termination of enterprise agreements. Key questions included whether the changes in business circumstances justified a termination and whether the proposed new agreement provided a fair and reasonable alternative to the existing one. The Commission also had to consider the implications of the changes on the employees' conditions and the fairness of the proposed transition.

In its decision, the Commission carefully weighed the evidence presented by both parties. It found that the substantial changes in the business environment, including significant operational shifts and financial pressures, did justify the termination of the existing agreement. The Commission noted that the proposed new agreement provided a fair and reasonable outcome for the employees, offering protections and conditions that aligned with the current realities of the business. Consequently, the Commission ruled in favour of the applicant, allowing the termination of the existing agreement and approving the new terms. The decision underscores the importance of adaptability in enterprise agreements to reflect the evolving needs of both employers and employees in a dynamic business landscape.

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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