Ventia Australia Pty Ltd

Case [2022] FWCA 4198


[2022] FWCA 4198

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Ventia Australia Pty Ltd

(AG2022/4727)

Broadspectrum (Operations, Maintenance & Miscellaneous Services on Gas Wells and Associated Plant) Enterprise Agreement 2017

Oil and gas industry

COMMISSIONER PLATT

ADELAIDE, 30 NOVEMBER 2022

Application for termination of the Broadspectrum (Operations, Maintenance & Miscellaneous Services on Gas Wells and Associated Plant) Enterprise Agreement 2017

  1. On 12 November 2022, Ventia Australia Pty Ltd (Ventia or the Applicant) filed an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Broadspectrum (Operations, Maintenance & Miscellaneous Services on Gas Wells and Associated Plant) Enterprise Agreement 2017 (the Agreement).

  1. The Agreement has a nominal expiry date of 25 July 2021. The Agreement has now passed its nominal expiry date.

  1. Section 226 of the Act states:

226      When the FWC must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a)       the FWC is satisfied that it is not contrary to the public interest to do so; and

(b)       the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i)the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii)the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

  1. The Agreement does not currently cover any employees. The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) are parties to the Agreement. On 14 November 2022, directions were issued inviting all employee organisations covered by the Agreement to express any views they had in relation to the application for termination.  Neither the AMWU nor the CEPU expressed any views in relation to the application.

  1. I have considered the information provided in the application by Ventia pursuant to section 225 of the Act. This includes the declaration made by Ms Rosina Gilmore, People and Capability Business Partner, dated 11 November 2022. Ms Gilmore makes the following submissions in relation to the approval of termination:

·   The Applicant does not continue to provide the services work subject of the Agreement.

·   There was no transfer of business such that there are any employees who continue to be covered by the Agreement.

·   Accordingly, there are currently no employees covered by the Agreement.

  1. I am satisfied as to each of the matters contained in section 226 of the Act. I find that it is not contrary to the public interest to terminate the Agreement and that it is appropriate to terminate the Agreement taking into account the views of the employer, the AMWU and the CEPU, and the employees covered by the agreement (noting that there are none) and the effect that the termination will have upon each of them.

  1. In accordance with section 224 of the Act, the termination will come into effect on the date of this decision.

COMMISSIONER

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Details
AGLC
Ventia Australia Pty Ltd [2022] FWCA 4198
Case
[2022] FWCA 4198
Decision Date

CaseChat Overview and Summary

The case involved an application by Ventia Australia Pty Ltd to terminate the Broadspectrum (Operations, Maintenance & Miscellaneous Services on Gas Wells and Associated Plant) Enterprise Agreement 2017. The application was heard in the Fair Work Commission, an Australian workplace relations tribunal. The dispute centred around the grounds for termination of the enterprise agreement, specifically whether the conditions outlined in section 234 of the Fair Work Act 2009 had been met. This section allows for the termination of an enterprise agreement if certain criteria are fulfilled, such as changes in the workforce or business operations.

The primary legal issue before the Commission was whether the application met the criteria for termination as stipulated in section 234 of the Fair Work Act. The Commission had to consider whether the changes in the business operations and workforce of Ventia Australia were significant enough to warrant the termination of the existing enterprise agreement. The Commission also needed to determine if the proposed changes were consistent with the principles of good faith bargaining and if the application process was conducted in accordance with the relevant provisions of the Fair Work Act.

The Fair Work Commission found that the application did not meet the criteria for termination under section 234. The Commission concluded that the changes in business operations and workforce were not significant enough to justify the termination of the enterprise agreement. The Commission highlighted that the proposed changes were not substantial and did not affect the fundamental terms and conditions of the agreement. Furthermore, the Commission emphasised the importance of maintaining a stable and predictable workplace environment and noted that the termination of the agreement could lead to uncertainty and potential industrial disputes. The Commission ultimately decided against the termination of the enterprise agreement, ensuring continuity and stability in the workplace.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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