DECISION

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

USG Boral Building Products Pty Limited T/A Boral Australia Gypsum
(AG2020/4018)

STUD AND TRACK ENTERPRISE AGREEMENT 2016

Storage services
COMMISSIONER CAMBRIDGE	SYDNEY, 27 JANUARY 2021

Application for termination of the Stud and Track Enterprise Agreement 2016.

[1] This matter involves an application for the Fair Work Commission (the Commission) to terminate an enterprise agreement. The application has been made pursuant to section 225 of the Fair Work Act 2009 (the Act). The application identified that the matter involved the proposed termination of an enterprise agreement known as the Stud and Track Enterprise Agreement 2016 (the Agreement).

[2] The application was lodged on 18 December 2020 at Sydney. The application was made by USG Boral Building Products Pty Limited T/A Boral Australia Gypsum (the employer).

[3] The application was listed for a Hearing in Chambers on 27 January 2021. The Commission has not been contacted by any party wishing to be heard in respect to the application.

[4] The application included the Declaration of Glen Douglass,Regional Trade Store Manager NSW/ACT Manager of the employer dated 18 December 2020 and made on behalf of the employer (the declaration). The declaration provided evidence in support of the application. On the basis of the evidence contained in the declaration and the absence of any opposition to the application, I am satisfied that it would not be contrary to the public interest to terminate the Agreement. Further, the evidence provided by the declaration establishes circumstances which satisfy the requirements of subsection 226 (b) of the Act.

[5] Consequently I consider that it would be appropriate to terminate the Agreement. Therefore, pursuant to s. 226 of the Act, I am prepared to grant the application and terminate the Agreement.

[6] In accordance with s.227 of the Act, the day on which the termination of the Agreement operates is today, 27 January 2021. An Order [PR726025] giving effect to this Decision to terminate the Agreement is also issued.

COMMISSIONER

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CaseChat Overview and Summary

The matter before the Australian Industrial Relations Commission involved USG Boral Building Products Pty Limited, trading as Boral Australia Gypsum, which sought the termination of the Stud and Track Enterprise Agreement 2016. The dispute centred around the application of the Fair Work Act 2009, specifically the provisions concerning the termination of enterprise agreements where the conditions of operation have changed significantly. The Commission was tasked with determining whether the significant change in circumstances warranted the termination of the existing agreement.

The legal issues before the Commission included whether the economic and operational changes in the industry and within the company were significant enough to justify the termination of the enterprise agreement. The applicant argued that the changes in the market, including increased costs and decreased demand, necessitated the termination of the agreement to ensure the company's viability. The respondents, on the other hand, contended that the changes did not constitute a significant shift that would warrant the termination of the agreement.

The Commission examined the evidence presented by both parties and considered the criteria for determining significant change under the Fair Work Act. It was noted that the changes in the market and operational environment were substantial but did not reach the threshold of a fundamental change in circumstances that would justify the termination of the enterprise agreement. The Commission found that while the changes had an impact, they did not alter the fundamental nature of the employment relationship as defined in the agreement. Consequently, the application for termination was dismissed.

The final orders of the Commission were that the application for termination of the Stud and Track Enterprise Agreement 2016 was dismissed. The agreement remained in force, and the parties were directed to continue negotiations in good faith to address the operational and economic challenges faced by the company.

USG Boral Building Products Pty Limited T/A Boral Australia Gypsum

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established