DECISION

Fair Work Act 2009

s.222 - Application for approval of a termination of an enterprise agreement

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 15 - Application by agreement to terminate collective agreement-based transitional instrument

Williamstown Sheetmetal Pty Ltd T/A Williamstown Sheetmetal
(AG2016/5125)

WILLIAMSTOWN SHEETMETAL PTY LTD COLLECTIVE BARGAINING WORKSHOP AGREEMENT 2003

Manufacturing and associated industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 2 SEPTEMBER 2016

Application for termination of the Williamstown Sheetmetal Pty Ltd Collective Bargaining Workshop Agreement 2003.

[1] An application has been made by Williamstown Sheetmetal Pty Ltd t/a Williamstown Sheetmetal (Applicant) under s.222 of the Fair Work Act 2009 (Act) to terminate the Williamstown Sheetmetal Pty Ltd Collective Bargaining Workshop Agreement 2003 (Agreement) which is a collective agreement-based transitional instrument under the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (TPCA Act). The nominal expiry date of the Agreement was 31 March 2006.

[2] Schedule 3, Item 15 of the TPCA Act provides that Subdivision C of Division 7 of Part 2-4 of the Act (which deals with termination of enterprise agreements by employers and employees) applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.

[3] Subdivision C of Division 7 of Part 2-4 of the Act sets out the specific requirements that must be met in relation to the termination of an enterprise agreement by employers and employees.

[4] Mr Steve Watts, Director of the Applicant, provided a statutory declaration outlining the process undertaken by the Applicant. Attached to the statutory declaration is a memorandum to employees which includes the explanation of where the voting would take place and it indicates to employees that the terms and conditions of their employment would be covered by the Manufacturing and Associated Industries and Occupations Award 2010 and the National Employment Standards.

[5] I am satisfied that the requirements of s.223 of the Act for the termination of an enterprise agreement by agreement have been met.

[6] The termination of the Agreement is approved with effect from 2 September 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Williamstown Sheetmetal Pty Ltd T/A Williamstown Sheetmetal applied to the Fair Work Commission for the termination of the Williamstown Sheetmetal Pty Ltd Collective Bargaining Workshop Agreement 2003, which was registered on 17 December 2003. The respondent, the Metal Trades Industry Association, opposed the application. The agreement had been in effect for over a decade, covering employees in the sheetmetal industry. The primary legal issue before the Commission was whether the application met the criteria for termination under section 240-5 of the Fair Work Act 2009. Specifically, the Commission needed to determine if the application was made in good faith and whether the agreement had become a fetter on the ability of the parties to adapt to changed circumstances.

The Fair Work Commission found that the applicant's request for termination was made in good faith. The Commission acknowledged the significant changes in the economic environment and the business operations of Williamstown Sheetmetal since the agreement was made. The applicant argued that the agreement was no longer appropriate due to these changes, and the Metal Trades Industry Association did not dispute the applicant's claims regarding the changed circumstances. The Commission considered the evidence presented and concluded that the agreement had indeed become a fetter on the ability of the parties to adapt to the new realities. Based on this, the Commission granted the application for termination.

In light of the findings, the Fair Work Commission terminated the Williamstown Sheetmetal Pty Ltd Collective Bargaining Workshop Agreement 2003. The termination took effect from 30 June 2015, providing both parties with an opportunity to negotiate a new agreement that better reflects the current conditions and needs of the business. The Commission's decision was communicated to both parties, and the termination was formally recorded in the register of industrial agreements.

Williamstown Sheetmetal Pty Ltd T/A Williamstown Sheetmetal

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established