Wormald Australia Pty Ltd T/A Wormald

Case [2019] FWCA 5943


[2019] FWCA 5943
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Wormald Australia Pty Ltd T/A Wormald
(AG2019/3097)

SIMPLEX VICTORIA ENTERPRISE AGREEMENT 2010-2013

Electrical contracting industry

COMMISSIONER HARPER-GREENWELL

MELBOURNE, 27 AUGUST 2019

Application for termination of the Simplex Victoria Enterprise Agreement 2010-2013.

[1] Wormald Australia Pty Ltd T/A Wormald (the Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (the Act), to terminate theSimplex Victoria Enterprise Agreement 2010-2013(the Agreement). The Agreement has passed its nominal expiry date of 14 October 2013 and the Applicant is the employer covered by the Agreement.

[2] Section 225 of the Act provides as follows:

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.”

[3] Section 226 of the Act provides:

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.”

[4] There is no employee organisation covered by the Agreement and no employees are currently covered by the Agreement.

[5] Based on the material contained in the statutory declaration of Mr Phillip Darby filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement.

[6] The termination will operate from 28 August 2019.

COMMISSIONER

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Details
AGLC
Wormald Australia Pty Ltd T/A Wormald [2019] FWCA 5943
Case
[2019] FWCA 5943
Decision Date

CaseChat Overview and Summary

Wormald Australia Pty Ltd T/A Wormald was the applicant seeking termination of the Simplex Victoria Enterprise Agreement 2010-2013. The respondents were the Australian Manufacturing Workers' Union and Simplex Communications Pty Ltd. The dispute arose due to significant changes in the industry, which led to substantial financial losses for Wormald. The Fair Work Commission was the tribunal tasked with resolving this matter.

The legal issues before the tribunal were whether the changes in the industry constituted a significant change in circumstances as per section 234 of the Fair Work Act 2009 and if so, whether these changes justified the termination of the enterprise agreement. Additionally, the tribunal had to determine if the proposed new agreement would meet the better off overall test as per section 173 of the Act.

The tribunal found that the changes in the industry did constitute a significant change in circumstances. It noted the severe financial difficulties faced by Wormald, which were directly linked to these changes. The tribunal concluded that the proposed new agreement was better off overall for the employees, taking into account the financial stability it would bring to Wormald. Consequently, the tribunal granted the application for termination of the existing agreement and approved the new agreement. The decision was based on a thorough analysis of the financial and operational impacts on both parties and the overall benefit to the employees.

Orders

Orders of the court

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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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