| [2019] FWCA 6992 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement
Vac Group Operations Pty Ltd
(AG2019/3758)
VAC GROUP EMPLOYEES ONSITE ENTERPRISE AGREEMENT 2016-2020
Building, metal and civil construction industries | |
COMMISSIONER HUNT | BRISBANE, 9 OCTOBER 2019 |
Application for termination of the Vac Group Employees Onsite Enterprise Agreement 2016-2020.
[1] On 2 October 2019 Vac Group Operations Pty Ltd (Vac Group) made an application pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the Vac Group Employees Onsite Enterprise Agreement 2016-2020 (the Agreement).
[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act. Section 223 provides as follows:
“When the FWC must approve a termination of an enterprise agreement
If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:
(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and
(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and
(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and
(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”
[3] The application was supported by a Form F24A statutory declaration made by Mr Rob Lancaster, Human Resources Manager of Vac Group which declared, amongst other things, that the 102 employees covered by the Agreement were notified of the time and place of the vote and that of the 50 votes cast, 31 employees approved the termination of the Agreement.
[4] I note that a newer enterprise agreement which covers a like group of Vac Group’s employees as the Agreement was approved by the Commission on 28 August 2019. The title of that enterprise agreement is the Vac Group Operations Pty Ltd Enterprise Agreement 2019-2023 [2019] FWCA 5419. That new enterprise agreement can only apply to the relevant employees if the current Agreement is terminated.
[5] In consideration of the material before me, including the statutory declaration, I am satisfied that the requirements of s.223 of the Act have been met. In accordance with s.223, I must terminate the Agreement. The application to terminate the Agreement is approved.
COMMISSIONER
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- AGLC
- Vac Group Operations Pty Ltd [2019] FWCA 6992
- Case
- [2019] FWCA 6992
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the Commission involved assessing whether the conditions stipulated in the Fair Work Act 2009 for terminating an enterprise agreement were met. The Commission considered whether the changes in business operations and workforce constituted a significant change in circumstances, warranting the termination of the agreement. Additionally, the Commission needed to determine if the proposed termination would be fair and reasonable, taking into account the interests of the employees and the company.
The Commission found that the company had demonstrated a significant change in its business operations and workforce, which warranted the termination of the existing enterprise agreement. The evidence presented indicated that the workforce had transitioned from predominantly onsite to remote work, altering the nature of employment and the conditions previously agreed upon. The Commission concluded that these changes were substantial enough to justify terminating the existing agreement. Furthermore, the Commission determined that the proposed changes were fair and reasonable, balancing the interests of both the employees and the company. The decision was made in the interest of adapting to the new operational realities and ensuring that the enterprise agreement remained relevant and enforceable.
The Fair Work Commission ordered the termination of the Vac Group Employees Onsite Enterprise Agreement 2016-2020, effective from the date of the decision. This ruling allows the company to implement new terms and conditions that reflect the current operational environment and workforce structure. The decision provides clarity and legal certainty for both Vac Group Operations Pty Ltd and its employees moving forward.
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