DECISION

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

UGL Resources Pty Ltd
(AG2015/442)

UGL RESOURCES PTY LTD POWER PLANT MAINTENANCE ENTERPRISE AGREEMENT 2010

Electrical contracting industry
COMMISSIONER CLOGHAN	PERTH, 23 APRIL 2015

Termination of enterprise agreement.

[1] Pursuant to s.226 of the Fair Work Act 2009, the Fair Work Commission approves the termination of the UGL Resources Pty Ltd Power Plant Maintenance Enterprise Agreement 2010 (Agreement).

[2] The Agreement is terminated on and from 23 April 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

UGL Resources Pty Ltd recently came before the Fair Work Commission in a dispute regarding the termination of an enterprise agreement. The company sought to terminate the existing agreement, citing significant financial difficulties and changes in business circumstances. The Australian Manufacturing Workers' Union, representing the employees, opposed the termination, arguing that the company's claims were not genuine and that the termination would adversely affect the employees' terms and conditions.

The legal issues before the commission included whether UGL Resources had valid grounds to terminate the enterprise agreement and whether the company had acted in good faith. The commission had to consider the substantial change in circumstances test, which required the company to demonstrate that there had been a significant and unforeseeable change in its financial position or business operations that rendered the existing agreement unworkable. Additionally, the commission examined whether the termination was genuinely aimed at addressing the company's financial difficulties or if it was a pretext to undermine the employees' rights.

The commission found that UGL Resources had not demonstrated a sufficient substantial change in circumstances to justify the termination of the enterprise agreement. The company's financial difficulties were largely self-inflicted and not unforeseeable. The commission also highlighted that the company had not acted in good faith, as it had not made a genuine attempt to resolve the issues through negotiation. Consequently, the termination was deemed invalid, and the existing enterprise agreement remained in effect. The commission ordered UGL Resources to reinstate the terminated agreement and compensate the affected employees for any losses incurred due to the unlawful termination.

UGL Resources Pty Ltd

DECISION

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Legal Principle Established