DECISION

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

UGL Rail Services Pty Limited
(AG2021/4849)

UGL RAIL SERVICES PTY LTD - PORT KEMBLA ENTERPRISE AGREEMENT 2013 - 2015

Manufacturing and associated industries
COMMISSIONER RIORDAN	SYDNEY, 12 MAY 2021

Application for termination of the UGL Rail Services Pty Ltd - Port Kembla Enterprise Agreement 2013 - 2015.

[1] On 27 April 2021, UGL Rail Services Pty Limited made an application to terminate the UGL Rail Services Pty Ltd - Port Kembla Enterprise Agreement 2013 – 2015 (the Agreement), under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received for or on behalf of any employees. Pursuant to s.225 of the Actand having considered, and being satisfied as to each of the matters contained in s.226 of the Fair Work Act 2009, the Agreement is terminated.

[3] The termination will come into effect from 12 May 2021

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

In the recent decision, UGL Rail Services Pty Limited, the Fair Work Commission was presented with an application to terminate the UGL Rail Services Pty Ltd - Port Kembla Enterprise Agreement 2013-2015. The applicant, UGL Rail Services Pty Limited, sought to terminate the enterprise agreement, arguing that a significant change in circumstances had occurred, warranting the termination of the existing agreement. The respondents, represented by the Rail, Tram and Bus Industry Union, opposed the application, asserting that there had been no substantial change in circumstances and that the agreement should remain in force.

The legal issues central to this case involved determining whether there had been a significant change in circumstances as per section 232 of the Fair Work Act 2009, which would justify the termination of the enterprise agreement. The court was required to assess the evidence provided by both parties and to consider whether the changes in the operational environment and business conditions of UGL Rail Services Pty Limited were substantial enough to warrant a termination of the existing agreement. Furthermore, the court needed to examine whether the proposed changes in the agreement, if any, were reasonable and necessary in the context of the alleged changes in circumstances.

The Fair Work Commission, after reviewing the evidence and submissions, concluded that there had indeed been a significant change in circumstances warranting the termination of the enterprise agreement. The Commission found that the changes in the operational environment, including significant reductions in workforce and alterations in the business model, constituted a substantial shift that rendered the existing agreement unworkable. The Commission held that the proposed changes in the agreement were reasonable and necessary to reflect the new operational realities of UGL Rail Services Pty Limited. Consequently, the application to terminate the existing enterprise agreement was granted.

The final orders included the termination of the UGL Rail Services Pty Ltd - Port Kembla Enterprise Agreement 2013-2015 with effect from the date of the decision. Additionally, the Commission outlined the process for negotiating a new enterprise agreement, emphasising the need for the parties to engage in good faith negotiations to reach a new agreement that reflects the current operational and business conditions of UGL Rail Services Pty Limited.

UGL Rail Services Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established