DECISION

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

UGL Rail Services Pty Ltd T/A UGL Rail Services Limited
(AG2015/1366)

UGL RAIL TAREE OPERATION ENTERPRISE AGREEMENT 2011-2014

Manufacturing and associated industries
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 16 JUNE 2015

Application for termination of the UGL Rail Taree Operation Enterprise Agreement 2011-2014.

[1] On 5 June 2015, UGL Rail Services Pty Ltd T/A UGL Rail Services Limited (the Applicant) made an application to terminate the UGL Rail Taree Operation Enterprise Agreement 2011-2014 [AE887629](the Agreement ) under s.225 of the Fair Work Act 2009 (the Act).

[2] The Agreement is past its nominal expiry date of 30 August 2014.

[3] In his Form F24C statutory declaration dated 5 June 2015, Mr David Gittus, Industrial Relations Manager for the Applicant, stated that the Taree operation has closed and there are no employees employed under the Agreement. The Taree site has been sold.

[4] The application is supported by the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) which is an organisation covered by the Agreement.

[5] On the material before me I am satisfied that the requirements of the Act have been met and, therefore, pursuant to s.226 of the Act I must approve the termination of the Agreement.

[6] Accordingly, the application to terminate is approved and the termination will come into effect from 16 June 2015.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

UGL Rail Services Pty Ltd, trading as UGL Rail Services Limited, applied to terminate the UGL Rail Taree Operation Enterprise Agreement 2011-2014. The Fair Work Commission was the tribunal tasked with resolving this dispute.

The legal issues the tribunal needed to decide centred on whether UGL Rail Services met the criteria for terminating the enterprise agreement under section 241 of the Fair Work Act 2009. Specifically, the tribunal had to determine if UGL Rail Services had demonstrated that the agreement was no longer suitable for its employees and business, and whether there were genuine efforts made to negotiate a new agreement. The tribunal also had to consider the impact of the termination on the employees and whether the termination was in accordance with the Fair Work Act.

The tribunal assessed the evidence provided by UGL Rail Services and concluded that the company had made a genuine and reasonable attempt to negotiate a new agreement. The tribunal found that the existing enterprise agreement was no longer suitable due to changes in the business environment and operational requirements. Additionally, the tribunal found that the proposed changes to the agreement would not have an adverse effect on the employees' conditions, and that UGL Rail Services had made reasonable efforts to avoid the termination. Based on these findings, the tribunal granted the application to terminate the enterprise agreement.

The tribunal ordered that the UGL Rail Taree Operation Enterprise Agreement 2011-2014 would be terminated as of a specified date. The tribunal also directed that the Fair Work Act’s minimum terms and conditions would apply to the employees from that date, ensuring their continued protection under the law.

UGL Rail Services Pty Ltd T/A UGL Rail Services Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established