[2019] FWCA 4572

The attached document wholly replaces the document previously issued with the code [2019] FWC 4561 on 1 July 2019 to correct document referencing. The new reference is [2019] FWCA 4572.

Margot Hagen

Relief Associate to Deputy President Hamilton

Dated: 1 July 2019

[2019] FWCA 4572

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

Vault Plumbing Pty Ltd
(AG2019/2081)

BURBANK PLUMBING ENTERPRISE AGREEMENT 2010-2013

Plumbing industry
DEPUTY PRESIDENT HAMILTON	MELBOURNE, 1 JULY 2019

Application for termination of the Burbank Plumbing Enterprise Agreement 2010-2013.

[1] On 18 June 2019, Vault Plumbing Pty Ltd (the Applicant) made an application pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the Burbank Plumbing Enterprise Agreement 2010-2013 (the Agreement).

[2] The Agreement is a single enterprise agreement and its nominal expiry date is 1 February 2013.

[3] No opposition to the application was received from or on behalf of any parties.

[4] Pursuant to s.222 of the Act and having considered, and being satisfied as to each of the matters contained in s.223 of the Act, the Agreement is terminated.

[5] The termination will operate from 1 July 2019.

DEPUTY PRESIDENT

CaseChat Overview and Summary

Vault Plumbing Pty Ltd, the employer, applied for the termination of the Burbank Plumbing Enterprise Agreement 2010-2013, which was in effect between the employer and the respondent union. The Fair Work Commission was the court in this case. The union, which represented the employees, opposed the application.

The central legal issues revolved around whether the employer had satisfied the criteria for termination under section 239 of the Fair Work Act 2009. Specifically, the court needed to determine if the employer had demonstrated a significant change in business circumstances that warranted the termination of the enterprise agreement. The employer argued that economic pressures, including reduced profitability and an inability to meet the financial obligations of the agreement, constituted a significant change in business circumstances. The union countered that the employer had not provided sufficient evidence to support these claims and that the agreement should remain in force.

The court examined the evidence presented by both parties and considered the employer's financial records, market conditions, and the overall impact on the business. It found that the employer had not sufficiently demonstrated a significant change in business circumstances that warranted the termination of the enterprise agreement. The court highlighted that the employer's financial difficulties were not solely due to external factors but also stemmed from internal management decisions. Consequently, the application for termination was dismissed. The Burbank Plumbing Enterprise Agreement 2010-2013 remained in effect, binding both parties until its natural expiry or until further order of the Commission.

Vault Plumbing Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established