DECISION

Fair Work Act 2009
s.225—Enterprise agreement

UGL Operations and Maintenance Pty Ltd
(AG2020/2138)

UGL OPERATIONS AND MAINTENANCE PTY LTD CALTEX KURNELL REFINERY ENTERPRISE AGREEMENT 2013

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

Application for termination of the UGL Operations and Maintenance Pty Ltd Caltex Kurnell Refinery 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 and Maintenance Pty Ltd Caltex Kurnell Refinery Enterprise Agreement 2013 (the Agreement). The Agreement has passed its nominal expiry date of 1 June 2015.

[2] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, being the employee organisation covered by the Agreement, was advised of the application and 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

UGL Operations and Maintenance Pty Ltd applied for the termination of the UGL Operations and Maintenance Pty Ltd Caltex Kurnell Refinery Enterprise Agreement 2013. The applicant sought to terminate the agreement on the grounds that a significant change in circumstances had occurred. The Fair Work Commission was the tribunal that heard the application. The legal issues before the Commission were whether a significant change in circumstances had occurred and, if so, whether it was appropriate to terminate the enterprise agreement.

The Commission found that a significant change in circumstances had indeed occurred. The changes in the business operations of the refinery and the subsequent reduction in workforce were identified as the primary factors contributing to the altered circumstances. The Commission considered these changes to be significant, as they fundamentally altered the conditions under which the enterprise agreement was negotiated and agreed upon. The Commission also considered whether termination was appropriate in the circumstances. It found that the changes had rendered the agreement obsolete and that termination was necessary to reflect the current realities of the workplace.

The Commission concluded that the significant change in circumstances warranted the termination of the enterprise agreement. The Commission recognised that while the termination of an enterprise agreement was a significant step, it was necessary to ensure that the terms of the agreement remained relevant and fair to both parties. The decision underscored the importance of adaptability in enterprise agreements to accommodate changes in business operations and workforce dynamics.

The Fair Work Commission ordered the termination of the UGL Operations and Maintenance Pty Ltd Caltex Kurnell Refinery Enterprise Agreement 2013, effective from the date of the decision. This order would allow for the negotiation of a new enterprise agreement that reflects the current operational environment and workforce conditions of the refinery.

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