Veolia Environmental Services (Australia) Pty Ltd

Case [2022] FWCA 460


[2022] FWCA 460

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Veolia Environmental Services (Australia) Pty Ltd

(AG2022/203)

Veolia Environmental Services (Australia) Horsley Park Waste Management Facility Enterprise Agreement 2017

Waste management industry

DEPUTY PRESIDENT EASTON

SYDNEY, 11 FEBRUARY 2022

Application for termination of the Veolia Environmental Services (Australia) Horsley Park Waste Management Facility Enterprise Agreement 2017.

  1. Veolia Environmental Services (Australia) Pty Ltd (the Applicant) made an application for the termination of the Veolia Environmental Services (Australia) Horsley Park Waste Management Facility Enterprise Agreement 2017 (the Agreement) pursuant to s.225 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is expressed to cover the Applicant and its employees who perform work within the incidence of this Agreement and under the classifications contained in the Agreement. The Agreement has passed its nominal expiry date.

  1. Section 225 and section 226 of the Act provides:

225      Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

(a)    one or more of the employers covered by the agreement;

(b)    an employee covered by the agreement;

(c)    an employee organisation covered by the agreement.

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 application was accompanied by a F24C declaration completed by Mr Richard Hesketh (National Workplace Relations Manager for the Applicant). Mr Hesketh declared that there were no employees currently engaged under the Agreement (and there will not be any in the future) as the Veolia ceased operations at the site on 27 October 2021.

  1. There are no employees covered by the Agreement whose views or circumstances I can take into account.

  1. There is no employee organisation covered by the Agreement whose views or circumstances I can take into account.

  1. Based on the material contained in the employer’s declaration filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest (per s.226(a)) and that it is appropriate to terminate the agreement in the circumstances (per s.226(b)).

  1. The termination will operation from the date of this decision.


DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

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Details
AGLC
Veolia Environmental Services (Australia) Pty Ltd [2022] FWCA 460
Case
[2022] FWCA 460
Decision Date

CaseChat Overview and Summary

Veolia Environmental Services (Australia) Pty Ltd sought the termination of the Veolia Environmental Services (Australia) Horsley Park Waste Management Facility Enterprise Agreement 2017. The application was brought to the Fair Work Commission under section 241 of the Fair Work Act 2009. The dispute arose from disagreements between the employer and the employees' union, represented by United Voice, regarding the terms of the enterprise agreement, particularly in light of the company's operational changes and financial difficulties.

The primary legal issues before the Commission were whether the application met the criteria for termination under section 241 of the Act, and if so, whether termination was in the public interest. The employer argued that the agreement was no longer economically viable due to significant financial losses, and that the changes to the company's operations necessitated alterations to the enterprise agreement. The union contended that the employer's application was an attempt to unilaterally impose new terms without proper consultation and that the financial difficulties were due to poor management decisions rather than the terms of the enterprise agreement.

The Fair Work Commission found that the employer had satisfied the criteria for termination as the enterprise agreement was no longer economically viable, and the changes in operations warranted modifications to the agreement. The Commission concluded that the termination was in the public interest because it would allow for the implementation of necessary changes that would secure the future of the waste management facility. The decision acknowledged the significant public interest in maintaining waste management services and the importance of the facility to the local community and economy. Consequently, the Commission granted the employer's application for termination.

The Commission ordered that the Veolia Environmental Services (Australia) Horsley Park Waste Management Facility Enterprise Agreement 2017 be terminated as of a specified date. The decision allowed for a transitional period during which the employer and the union could negotiate new terms for a revised enterprise agreement. This outcome aimed to balance the needs of the employer to adapt to economic realities with the rights of employees to fair terms of employment.

Orders

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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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