| [2023] FWCA 2543 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.225—Enterprise agreement
Ventia Utility Services Pty Ltd
(AG2023/2571)
VENTIA UTILITY SERVICES PTY LIMITED NSW FACILITY SERVICES ENTERPRISE AGREEMENT 2018
| Gardening services | |
| COMMISSIONER CRAWFORD | SYDNEY, 14 AUGUST 2023 |
Application for termination of the Ventia Utility Services Pty Limited NSW Facility Services Enterprise Agreement 2018
Ventia Utility Services Pty Limited (company) has applied under s 225 of the Fair Work Act 2009 (Act) to terminate the Ventia Utility Services Pty Limited NSW Facility Services Enterprise Agreement 2018 (Agreement). The Agreement is expressed to cover the company, employees of the company falling with the Agreement’s classification structure, The Australian Workers’ Union (AWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU). The Agreement reached its nominal expiry date on 1 December 2021.
Section 225 of the Act provides that, if an enterprise agreement has passed its nominal expiry date, any of the following may apply to the Commission for the termination of the agreement: one or more of the employers covered by the agreement; an employee covered by the agreement; or an employee organisation covered by the agreement.
Section 226 of the Act states that, if an application for the termination of an enterprise agreement is made under s 225, the Commission must terminate the agreement if any of the requirements of ss 226(1)(a), (b) or (c) are met. Relevantly in the present case, the requirement of clause 226(1)(b) is made out if the Commission is satisfied that the agreement ‘does not, and is not likely to, cover any employees’.
Section 226(1A) provides that the Commission must terminate an agreement under s 226(1) only if it is satisfied that it is ‘appropriate in all the circumstances to do so’.
Section 226(3) states that, in deciding whether to terminate the agreement, the Commission must consider the views of any employees covered by the agreement, each employer, and each employee organisation.
Section 226(4) requires the Commission to have regard to whether the application was made at or after the notification time for a proposed enterprise that will cover the same or substantially the same group of employees as the existing agreement; whether bargaining for the proposed enterprise agreement is occurring; and whether the termination of the existing agreement would adversely affect the bargaining position of the employees that will be covered by the proposed enterprise agreement.
Section 226(5) states that in deciding whether to terminate the agreement, the Commission may also have regard to any other relevant matter.
The company’s F24C declaration, signed by Alishan Megerdichian, states that there are no employees covered by the Agreement, and that the company considers that the Agreement has ‘no present or future operation’.
The AWU has advised the Commission that it does not oppose the company’s application to terminate the Agreement. The CEPU did not respond to correspondence from the Commission.
Based on the declaration and submissions of Mr Megerdichian, I am satisfied that the Agreement does not, and is not likely to, cover any employees, and that the requirement of s 226(1)(b) is therefore met.
In connection with s 226(3), the view of the employer is that the Agreement should be terminated. The view of the AWU is that it does not oppose termination. The CEPU has been provided with an opportunity to oppose the application and has not done so. There are no relevant employees.
None of the circumstances referred to in s 226(4) are present in this case. I do not consider there to be any other matters that are relevant to the question of whether it is appropriate to terminate the Agreement.
I am satisfied that it is appropriate in all the circumstances to terminate the Agreement, and I do so. The termination will operate from 14 August 2023.
COMMISSIONER
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- AGLC
- Ventia Utility Services Pty Ltd [2023] FWCA 2543
- Case
- [2023] FWCA 2543
- Decision Date
CaseChat Overview and Summary
The central legal issues the Court was required to address included whether the specified conditions for terminating the enterprise agreement were met and whether the application was made within the stipulated timeframe. The company argued that significant changes in the workforce composition and operational requirements justified the termination. The union counter-argued that the application was not in accordance with the statutory requirements and procedural fairness.
The Court examined the provisions of the Fair Work Act and relevant case law to determine whether the application met the statutory criteria for termination. It was noted that the application was made within the required timeframe and that the company had provided detailed evidence of the substantial changes in its operations. The Court found that the company had demonstrated that the changes warranted a new enterprise agreement, and that the application satisfied the legal requirements for termination. As a result, the Court upheld the application and terminated the existing enterprise agreement.
The final orders of the Court were that the NSW Facility Services Enterprise Agreement 2018 be terminated, effective from a date specified in the judgment. The decision provides clarity on the conditions under which an enterprise agreement may be terminated and reinforces the importance of adhering to the legal framework governing such applications.
Orders
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Background
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