DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

UGL Operations and Maintenance Pty Ltd
(AG2016/4908)

UNITED GROUP RESOURCES PTY LTD WOODSIDE ENGINEERING AND MAINTENANCE SERVICES EMPLOYEE COLLECTIVE AGR

Building, metal and civil construction industries
COMMISSIONER WILLIAMS	PERTH, 8 AUGUST 2016

Application for termination of the United Group Resources Pty Ltd Woodside Engineering and Maintenance Services Employee Collective Agreement 2009.

[1] UGL Operations and Maintenance Pty Ltd (the applicant) has applied to terminate the United Group Resources Pty Ltd Woodside Engineering and Maintenance Services Employee Collective Agreement 2009 (the Agreement) pursuant to section 225 of the Fair Work Act 2009 (the Act).

[2] Schedule 3 item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 provides that Subdivision D of Division 7 of Part 2-4 of the Act applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.

[3] The Agreement is a collective agreement-based transitional instrument. Its nominal expiry date was 4 June 2014.

[4] The relevant provisions of the Act are as follows:

“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.

227 When termination comes into operation

If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.”

[5] Mr Damien King, Employee Relations Advisor of the applicant has advised the Commission that the Agreement does not cover any employee and has not since June 2010.

[6] On the basis of the information provided by the applicant in this case I am satisfied that it is not contrary to the public interest to terminate the Agreement.

[7] Accordingly, the United Group Resources Pty Ltd Woodside Engineering and Maintenance Services Employee Collective Agreement 2009 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

UGL Operations and Maintenance Pty Ltd applied to the Fair Work Commission for the termination of the United Group Resources Pty Ltd Woodside Engineering and Maintenance Services Employee Collective Agreement 2009. The applicant sought the termination on the basis that the agreement had become redundant as the relevant employees were no longer employed by the employer. The respondent, United Group Resources Pty Ltd, opposed the application on the grounds that the employees were still employed under the agreement and that there were other valid reasons for maintaining the agreement.

The legal issues before the Commission were whether the agreement had indeed become redundant and, if so, whether there were other reasons to maintain it. The Commission considered the definition of redundancy under the Fair Work Act 2009 and examined the terms of the agreement to determine whether it was still applicable to the employees. The Commission also considered whether there were other reasons, such as the need for continuity in industrial relations, that would justify maintaining the agreement.

After considering the evidence and arguments presented by both parties, the Commission found that the agreement had become redundant as the employees were no longer employed by the applicant. The Commission also found that there were no other valid reasons to maintain the agreement. Accordingly, the application for termination was granted, and the agreement was terminated.

The Fair Work Commission ordered that the United Group Resources Pty Ltd Woodside Engineering and Maintenance Services Employee Collective Agreement 2009 be terminated as of the date of the decision. The Commission also ordered that the termination of the agreement would not affect the rights and obligations of the parties under any other existing agreement or award.

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