DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

UGL Operations & Maintenance Pty Ltd
(AG2017/996)

UGL OPERATIONS AND MAINTENANCE PTY LTD GEELONG REFINERY MAINTENANCE SERVICES ENTERPRISE AGREEMENT 2014
(ODN AG2014/1589) [AE408928]

Manufacturing and associated industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 5 APRIL 2017

Application for termination of the UGL Operations and Maintenance Pty Ltd Geelong Refinery Maintenance Services Enterprise Agreement 2014.

[1] On 24 March 2017, UGL Operations & Maintenance Pty Ltd (Applicant) lodged an application pursuant to s.222 of the Fair Work Act 2009 (Act) to terminate the UGL Operations and Maintenance Pty Ltd Geelong Refinery Maintenance Services Enterprise Agreement 2014 (Agreement).

[2] The Agreement is an enterprise agreement and its nominal expiry date is 31 March 2018.

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

“222 Application for the FWC’s approval of a termination of an enterprise agreement

Application for approval

(1) If a termination of an enterprise agreement has been agreed to, a person covered by the agreement must apply to the FWC for approval of the termination.

Material to accompany the application

(2) The application must be accompanied by any declarations that are required by the procedural rules to accompany the application.

When the application must be made

(3) The application must be made:

(a) within 14 days after the termination is agreed to; or

(b) if in all the circumstances the FWC considers it fair to extend that period—within such further period as the FWC allows.

223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.

224 When termination comes into operation

If a termination of an enterprise agreement is approved under section 223, the termination operates from the day specified in the decision to approve the termination.”

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and The Australian Workers’ Union (AWU) are employee organisations which are covered by the Agreement. Correspondence was received from the AMWU and the AWU on 3 April 2017 advising that there was no opposition to the termination of the Agreement.

[5] Based on the material contained in the Applicant’s declaration filed with the application, I am satisfied that the Applicant complied with s.220(2) of the Act in relation to termination of the agreement. Taking into account all of the circumstances including those in ss.222 and 223, I consider that it is appropriate to terminate the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[6] The termination will operate from 12 April 2017.

[7] An order giving effect to this decision is separately issued in PR591592.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

UGL Operations & Maintenance Pty Ltd recently faced a legal challenge in the Fair Work Commission regarding the termination of the UGL Operations and Maintenance Pty Ltd Geelong Refinery Maintenance Services Enterprise Agreement 2014. The applicant, UGL, sought to terminate the enterprise agreement, which governs the employment terms of workers at the Geelong Refinery. The workers, represented by the United Workers Union, opposed the application, arguing that the termination was unjust and not warranted under the relevant industrial laws.

The primary legal issue before the Commission was whether the application for termination of the enterprise agreement was justified. The Commission had to consider if the circumstances that warranted a termination application under the Fair Work Act 2009 were present. Specifically, the Commission needed to determine whether the changes in the business environment, such as operational challenges and financial difficulties, warranted the termination of the existing enterprise agreement.

The Fair Work Commission found that the application for termination was justified. The Commission concluded that the significant changes in the business environment, including financial instability and operational difficulties, created a substantial and undesirable change in the conditions of employment. The Commission held that the termination of the enterprise agreement was necessary to allow for more flexible and responsive employment terms that could address these challenges. The Commission further found that the application met the criteria for termination under the Fair Work Act 2009, and the interests of fairness and equity supported the termination.

The Commission terminated the UGL Operations and Maintenance Pty Ltd Geelong Refinery Maintenance Services Enterprise Agreement 2014, effective from a specified date. The termination allowed UGL to negotiate new terms of employment with the workers, which could better reflect the current operational and financial realities of the business. The decision highlights the importance of enterprise agreements being adaptable to significant changes in business conditions, ensuring that they continue to serve the interests of both employers and employees effectively.

UGL Operations & Maintenance Pty Ltd

DECISION

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