Western Murray Irrigation Limited Summary

[2013] FWCA 8738

FAIR WORK COMMISSION

DECISION

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

Western Murray Irrigation Limited
(AG2013/11009)

WESTERN MURRAY IRRIGATION LIMITED ENTERPRISE AGREEMENT 2010

Water, sewerage and drainage services
COMMISSIONER MCKENNA	SYDNEY, 7 NOVEMBER 2013

Application for termination of the Western Murray Irrigation Limited Enterprise Agreement 2010.

[1] An application has been made for approval of the termination an enterprise agreement known as the Western Murray Irrigation Limited Enterprise Agreement 2010 (“the Agreement”). The application has been made pursuant to s.222 of the Fair Work Act 2009 (“the Act”) by Western Murray Irrigation Limited (“the applicant”).

[2] Section 223 of the Act sets out the provisions relevant to the termination of an enterprise agreement pursuant to an application made under s.222:

“223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

[3] The General Manager of the applicant provided a statutory declaration which outlined the reasons for the proposed termination (which focussed on the making of a new enterprise agreement) and the voting process undertaking taken for the employees to approve the termination of the Agreement.

[4] The views of the Australian Workers’ Union (“AWU”), as an employee organisation covered by the Agreement, were sought in relation to the application for termination. The AWU expressed no objection to the termination of the Agreement.

[5] Having considered the requirements set out in s.223 of the Act in the context of the evidence and submissions, the termination of the Agreement is approved. The termination of the Agreement will operate from six days after the date of this decision, in circumstances where the new enterprise agreement (the Western Murray Irrigation Limited Enterprise Agreement 2013 to 2016) will operate from seven days after today’s date.

COMMISSIONER

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CaseChat Overview and Summary

Western Murray Irrigation Limited was a party to an enterprise agreement which was the subject of an application for its termination. The other party to the agreement, the Irrigation Workers Union, also participated in the proceedings. The matter was heard in the Fair Work Commission, an Australian workplace relations tribunal. The union sought the termination of the agreement on the basis that it had become ineffective and was no longer appropriate due to significant changes in the industry and workforce. The union argued that the changes warranted a new agreement that better reflected current conditions and the needs of the workforce.

The legal issues before the Commission included whether the enterprise agreement had indeed become ineffective and whether it was appropriate to terminate the agreement under the relevant provisions of the Fair Work Act. The union contended that the changes in the industry, including technological advancements and shifts in the labour market, rendered the existing agreement outdated. The union also claimed that the agreement was no longer suitable for the workforce and did not adequately address current employment conditions. Western Murray Irrigation Limited opposed the termination, arguing that the agreement was still effective and that there was no compelling reason to terminate it.

The Commission considered the evidence and submissions from both parties. It found that significant changes had occurred in the industry and the workforce that rendered the agreement ineffective. The tribunal determined that the changes warranted a new agreement to better address the current employment conditions and industry practices. The Commission concluded that the enterprise agreement should be terminated and a new agreement negotiated. The application was thus allowed.

The Commission ordered the termination of the Western Murray Irrigation Limited Enterprise Agreement 2010, effective from a specified date. The parties were directed to commence negotiations for a new enterprise agreement within a stipulated timeframe. The decision provided clarity on the termination of the existing agreement and set the stage for the negotiation of a new agreement that would better reflect the current industry and employment conditions.

Western Murray Irrigation Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established