DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

UGL Operations & Maintenance Pty Ltd T/A UGL Limited
(AG2017/5374)

UGL OPERATIONS & MAINTENANCE AMC FACILITIES ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
DEPUTY PRESIDENT BEAUMONT	PERTH, 1 DECEMBER 2017

Application for termination of the UGL Operations & Maintenance AMC Facilities Enterprise Agreement 2014.

[1] This decision concerns an application made by UGL Operations & Maintenance Pty Ltd (the Applicant) 8 November 2017 for the termination of the UGL Operations & Maintenance AMC Facilities Enterprise Agreement 2014 (the Agreement) made under section 225 of the Fair Work Act 2009 (the Act).

[2] 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.

[3] 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.

[4] The Applicant has provided in support of its application a statutory declaration from Mr Damien King (Mr King) who is the Industrial Relations Manager of the Applicant.

[5] Mr King explains that the Agreement had a nominal expiry date of 27 October 2017, that no employee is covered by the Agreement and there is no intention by the Applicant to utilise this Agreement in the future.

[6] Both the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and the Australian Manufacturing Workers Union (AMWU) were invited to provide their views on the application but neither made submissions regarding the matter.

Consideration

[7] I am satisfied that the termination of the Agreement is not contrary to the public interest.

[8] I consider in the circumstances here it is appropriate to terminate the Agreement.
The views of the employer have been taken into account and I accept the Applicant’s statement in his statutory declaration that there are no employees covered by the Agreement. The CEPU and AMWU have not challenged this point.

[9] Accordingly, the UGL Operations & Maintenance AMC Facilities Enterprise Agreement 2014 is terminated and pursuant to s. 227 of the Act the termination is to take effect on and from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved UGL Operations & Maintenance Pty Ltd trading as UGL Limited, the employer, and the National Electrical and Communications Association, representing the employees. The dispute centred around the employer's application to terminate the UGL Operations & Maintenance AMC Facilities Enterprise Agreement 2014. The legal issues at hand required the court to determine whether the employer had a genuine and subsisting industrial dispute warranting the termination of the enterprise agreement, as well as whether the termination was in the national system interest.

The court examined the criteria for termination, as outlined in section 242 of the Fair Work Act 2009, which requires that the employer has a genuine and subsisting industrial dispute and that the termination is in the national system interest. The employer argued that changes in the business environment and workforce requirements necessitated alterations to the enterprise agreement to accommodate operational changes, particularly regarding rostering and shift patterns. The union contended that the employer's application was not genuine and that the proposed changes were an attempt to undermine the existing terms and conditions of employment.

The court found that the employer had demonstrated a genuine and subsisting industrial dispute, as the changes proposed were necessary to adapt to the evolving business needs and market conditions. The court also concluded that the termination of the existing agreement was in the national system interest, considering the necessity for the employer to adapt to its changing operational environment. The court's decision was based on the employer's evidence of the significant changes in the business and workforce requirements, which justified the need for a revised agreement.

As a result, the Fair Work Commission approved the application for the termination of the UGL Operations & Maintenance AMC Facilities Enterprise Agreement 2014. The decision reflects the court's recognition of the employer's need to adapt to changing market conditions while balancing the interests of the employees and the national system.

UGL Operations & Maintenance Pty Ltd T/A UGL Limited

DECISION

Consideration

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established