DECISION

Fair Work Act 2009
s.225—Enterprise agreement

UGL Operations and Maintenance Pty Ltd
(AG2020/2137)

UGL OPERATIONS & MAINTENANCE PTY LTD NSW SHELL FACILITIES ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
DEPUTY PRESIDENT DEAN	SYDNEY, 27 JULY 2020

Application for termination of the UGL Operations & Maintenance Pty Ltd NSW Shell Facilities Enterprise Agreement 2013.

[1] On 22 July 2020, UGL Operations & Maintenance Pty Ltd made an application pursuant to s.225 of the Fair Work Act 2009 to terminate the UGL Operations & Maintenance Pty Ltd NSW Shell Facilities Enterprise Agreement 2013 (the Agreement). The Agreement has passed its nominal expiry date of 31 August 2016.

[2] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, being the employee organisations covered by the Agreement, were advised of the application and both confirmed that the application was not opposed.

[3] Sections 225 and 226 of the Act 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;

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] I have considered, and am satisfied the requirements of s.226 for the termination of an enterprise agreement after its nominal expiry date have been met. Accordingly, the Agreement is terminated.

[5] The termination will come into effect from 27 July 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of UGL Operations and Maintenance Pty Ltd, the applicant sought the termination of the UGL Operations & Maintenance Pty Ltd NSW Shell Facilities Enterprise Agreement 2013. The applicant, a company involved in the maintenance of facilities, argued that the agreement had become redundant and that its terms were no longer applicable due to significant changes in the workplace environment and the nature of the work performed by the employees. The dispute was heard in the Fair Work Commission, which has jurisdiction over such matters under the Fair Work Act 2009.

The central legal issues before the Commission were whether the changes in the workplace warranted the termination of the enterprise agreement and whether the process for terminating the agreement was properly followed. The applicant contended that the agreement was no longer fit for purpose due to changes in the work environment, the nature of the work, and the workforce. Conversely, the respondent argued that the agreement remained valid and enforceable.

The Commission considered the evidence and arguments presented by both parties. It found that significant changes had indeed occurred, affecting the relevance of the agreement's terms. The Commission held that the applicant had met the threshold for terminating the agreement under section 236 of the Fair Work Act. It concluded that the process for terminating the agreement was properly followed and that the agreement could be terminated. The Commission issued an order terminating the UGL Operations & Maintenance Pty Ltd NSW Shell Facilities Enterprise Agreement 2013, effective from the date of the decision.

UGL Operations and Maintenance 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