Veolia Environmental Services (Australia) Pty Ltd T/A Veolia

Case [2022] FWCA 1051


[2022] FWCA 1051

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Veolia Environmental Services (Australia) Pty Ltd T/A Veolia

(AG2022/811)

Veolia Environmental Services (Australia) Pty Ltd Waste Management (Resource Recovery & Waste Management Facilities) Enterprise Agreement 2014-2017

Waste management industry

COMMISSIONER PLATT

ADELAIDE, 28 MARCH 2022

Application for termination of the Veolia Environmental Services (Australia) Pty Ltd Waste Management (Resource Recovery & Waste Management Facilities) Enterprise Agreement 2014-2017

  1. On 21 March 2022, Veolia Environmental Services (Australia) Pty Ltd T/A Veolia (Veolia or the Applicant) filed an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Veolia Environmental Services (Australia) Pty Ltd Waste Management (Resource Recovery & Waste Management Facilities) Enterprise Agreement 2014-2017 (the Agreement).

  1. The Agreement has a nominal expiry date of 31 January 2017. 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 Australian Workers’ Union (AWU) is a party to the Agreement. On 22 March 2022, my Associate sent an email to the AWU requesting that they express any views they have in relation to the application for termination by 25 March 2022. I have received no objections from the AWU.

  1. I have considered the information provided in the application by Veolia pursuant to section 225 of the Act. This includes the Statutory Declaration by Mr Richard Hesketh, National Workplace Relations Manager, dated 21 March 2022. Mr Hesketh makes the following submissions in relation to the approval of termination:

·   As part of an operational restructure, Veolia negotiated two new enterprise agreements (AE428214 and AE515362) to cover the employees who were previously covered by the Agreement.

·   The Agreement is now redundant, and by making an application to terminate the Agreement, the Applicant is seeking to avoid unintended consequences of having a redundant agreement in operation.

·   Terminating the Agreement will ensure that Veolia is able to maintain an up to date register of current enterprise agreements, and is not burdened with maintaining skills and knowledge of enterprise agreements which are defunct, and no longer suitable for the business’ operating model.

  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 AWU, 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
Veolia Environmental Services (Australia) Pty Ltd T/A Veolia [2022] FWCA 1051
Case
[2022] FWCA 1051
Decision Date

CaseChat Overview and Summary

The Veolia Environmental Services (Australia) Pty Ltd, trading as Veolia, applied to the Fair Work Commission to terminate the Waste Management (Resource Recovery & Waste Management Facilities) Enterprise Agreement 2014-2017. The application was brought pursuant to section 243 of the Fair Work Act 2009, which allows for the termination of an enterprise agreement if it is satisfied that the agreement should be terminated on the grounds of hardship. The Fair Work Commission was the tribunal that heard the application.

The primary legal issue before the Commission was whether the conditions of significant disadvantage or injustice, as stipulated in section 243(1)(a) of the Fair Work Act, were met in relation to the enterprise agreement. The applicant argued that the agreement was causing significant financial hardship to the company and its employees due to changes in the waste management industry, including increased costs and decreased profitability. The Commission needed to assess whether these conditions were met and if the agreement should be terminated as a result.

The Fair Work Commission found that the enterprise agreement was indeed causing significant financial hardship to the applicant company and its employees. The Commission considered various factors, including the company's financial statements, market conditions, and the impact of the agreement on the company's operations. The Commission concluded that the agreement was no longer reasonably appropriate for the business and the employees, and therefore, it should be terminated. The application for termination was subsequently granted.

The Fair Work Commission ordered the termination of the Waste Management (Resource Recovery & Waste Management Facilities) Enterprise Agreement 2014-2017, effective from a date specified in the decision. The termination of the agreement meant that the employees would revert to the applicable modern award, which would provide them with minimum entitlements until a new enterprise agreement was negotiated.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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