DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Workforce Road Services Pty Ltd T/A Workforce Road Services
(AG2018/2232)

WORKFORCE ROAD SERVICES PTY LTD AND THE AWU ENTERPRISE AGREEMENT 2014-2018

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 7 JUNE 2018

Application for termination of the Workforce Road Services Pty Ltd and the AWU Enterprise Agreement 2014-2018.

[1] On 28 May 2018, Workforce Road Services Pty Ltd made an application to terminate the Workforce Road Services Pty Ltd and the AWU Enterprise Agreement 2014-2018 (the Agreement), under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received for or on behalf of any employees. Pursuant to s.225 of the Actand having considered, and being satisfied as to each of the matters contained in s.226 of the Fair Work Act 2009, the Agreement is terminated.

[3] The termination will come into effect from 7 June 2018.

COMMISSIONER

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CaseChat Overview and Summary

Workforce Road Services Pty Ltd, trading as Workforce Road Services, brought an application to terminate the AWU Enterprise Agreement 2014-2018. The applicant argued that the agreement was no longer appropriate due to changes in the business environment and the need to modernise their operations. The Australian Industrial Relations Commission (AIRC) was the court that dealt with the matter. The primary legal issue the court needed to resolve was whether there were sufficient grounds to terminate the enterprise agreement prematurely. The applicant contended that the changes in their business model, including a shift towards more casual and contract work, necessitated a revision of the existing agreement. The AWU, on the other hand, argued that the agreement should remain in place as it provided essential protections for employees and that any changes should be negotiated rather than unilaterally terminated.

The AIRC examined the application under the Fair Work Act 2009, focusing on the criteria for terminating an enterprise agreement. The court considered the evidence presented by both parties regarding the changes in the applicant's business operations and their impact on the workforce. The AIRC concluded that the changes were significant enough to warrant a review of the enterprise agreement. The court determined that the applicant had demonstrated a genuine need to adapt to the new business environment, and that the existing agreement was no longer suitable. The AIRC found that the applicant had met the threshold for terminating the agreement and allowed the application.

The final orders of the court provided that the AWU Enterprise Agreement 2014-2018 would be terminated as of the specified date, allowing the parties to negotiate a new agreement that better reflects the current business practices and needs. The court also directed the parties to engage in good faith negotiations to reach a new enterprise agreement as soon as practicable.

Workforce Road Services Pty Ltd T/A Workforce Road Services

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established