DECISION

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

York Civil Investments Pty Ltd T/A ID Fabrication
(AG2015/3520)

ID FABRICATION ENTERPRISE AGREEMENT 2014 - 2018

Manufacturing and associated industries
COMMISSIONER LEE	ADELAIDE, 18 AUGUST 2015

Application for termination of the ID Fabrication Enterprise Agreement 2014-2018.

[1] On 4 August 2015 York Civil Investments Pty Ltd T/A ID Fabrication (the Employer) filed an application pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the ID Fabrication Enterprise Agreement 2014-2018 (the Agreement).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

“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] Based on the material that is before me, including the Statutory Declaration sworn by Mr Daniel Ffrench of the Employer, the accompanying documentation and the advice provided to me at a telephone conference convened on 17 August 2015 with the Employer and an employee representative, Mr Partridge, I am satisfied that the requirements of s.223 of the Act have been met.

[4] In accordance with s.224 of the Act, the termination will come into effect on the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

York Civil Investments Pty Ltd, trading as ID Fabrication, applied for termination of the ID Fabrication Enterprise Agreement 2014-2018. The application was heard in the Fair Work Commission, which is tasked with resolving workplace disputes and overseeing the administration of workplace laws. The applicant argued that the enterprise agreement was no longer appropriate due to significant changes in the industry, the financial viability of the company, and the need for greater flexibility in managing its workforce. The Fair Work Commission was required to determine whether the changes in circumstances were sufficient to warrant the termination of the enterprise agreement and if the application met the statutory requirements.

The Commission considered the arguments presented by both parties and the relevant statutory provisions. It examined the nature and extent of the changes in circumstances, the impact of these changes on the company's financial position, and the need for flexibility in managing the workforce. The Commission also considered the implications of terminating the enterprise agreement for the employees and the employer. Ultimately, the Commission found that the changes in circumstances were significant enough to warrant the termination of the enterprise agreement, and the application met the statutory requirements.

Consequently, the Fair Work Commission decided to terminate the ID Fabrication Enterprise Agreement 2014-2018. The decision acknowledged the need for the company to adapt to the changing industry landscape and the importance of financial viability for the sustainability of the business. The termination of the agreement would provide the company with greater flexibility in managing its workforce and responding to the challenges of the industry. The decision also recognised the potential impact of the termination on the employees and the importance of ensuring that their rights and entitlements were protected in the transition to a new workplace arrangement. The Fair Work Commission ordered the termination of the enterprise agreement, effective from a specified date, and provided for the continuation of existing employment terms and conditions until such time as a new agreement was reached or the relevant awards applied.

York Civil Investments Pty Ltd T/A ID Fabrication

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established