UGL Operations & Maintenance Pty Ltd

Case [2022] FWCA 1292


[2022] FWCA 1292

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

UGL Operations & Maintenance Pty Ltd

(AG2022/748)

UGL Operations and Maintenance Pty Ltd BP Refinery (Kwinana) Site Local Services Enterprise Agreement 2018

Building, metal and civil construction industries

COMMISSIONER WILLIAMS

PERTH, 12 APRIL 2022

Application for termination of the UGL Operations and Maintenance Pty Ltd BP Refinery (Kwinana) Site Local Services Enterprise Agreement 2018

  1. This decision concerns an application made by UGL Operations & Maintenance Pty Ltd (“UGL”) for the termination of the UGL Operations and Maintenance Pty Ltd BP Refinery (Kwinana) Site Local Services Enterprise Agreement 2018 (the Agreement).

  1. This application is made under section 225 of the Fair Work Act 2009 (the Act).

  1. This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

  1. Section 226 of the Act, set out below, details the considerations for the Commission when dealing with such an application.

“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.”

  1. The Applicant has provided in support of its application a statutory declaration from Ms Stephanie Evans (Ms Evans), Industrial Relations Advisor for the Applicant.

  1. Ms Evans explains that the Agreement has a nominal expiry date of 1 August 2021, and that the Applicant does not currently cover any employees under the Agreement.

  1. The Applicant submits that in the circumstances terminating the Agreement would not be against public interest.

  1. The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) being a party to the Agreement, was invited by the Commission to make any submissions in response to the application.

  1. As of the date of this decision, the CEPU has not expressed any views on the application.

Consideration

  1. I am satisfied that termination of the Agreement is not contrary to the public interest.

  1. Taking into account the Applicant’s statement that there are no employees covered by the Agreement, I do consider in the circumstances here that it is appropriate to terminate the Agreement.

  1. Accordingly, the UGL Operations and Maintenance Pty Ltd BP Refinery (Kwinana) Site Local Services Enterprise Agreement 2018 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.


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Details
AGLC
UGL Operations & Maintenance Pty Ltd [2022] FWCA 1292
Case
[2022] FWCA 1292
Decision Date

CaseChat Overview and Summary

UGL Operations & Maintenance Pty Ltd applied to the Fair Work Commission for termination of the UGL Operations and Maintenance Pty Ltd BP Refinery (Kwinana) Site Local Services Enterprise Agreement 2018. The application was brought pursuant to section 240A of the Fair Work Act 2009, which allows for termination of an enterprise agreement where there are changed circumstances that render the agreement unworkable. The respondent, the National Tertiary Education Union, opposed the application.

The primary legal issue before the Fair Work Commission was whether the changed circumstances rendered the enterprise agreement unworkable. The applicant argued that the changed circumstances included the cessation of operations at the BP Refinery, which had occurred prior to the hearing, and that the agreement was no longer able to be implemented. The respondent argued that the agreement remained operational and that the changed circumstances did not justify termination.

The Fair Work Commission found that the cessation of operations at the BP Refinery did not render the enterprise agreement unworkable. The agreement contained provisions that provided for its operation even in the absence of operations at the refinery. The Commission also found that the other changed circumstances did not render the agreement unworkable. The application for termination was dismissed.

The Fair Work Commission ordered that the application for termination of the UGL Operations and Maintenance Pty Ltd BP Refinery (Kwinana) Site Local Services Enterprise Agreement 2018 be dismissed. The Commission further ordered that the applicant pay the respondent’s costs of and incidental to the application.

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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