ZNX Pty Ltd

Case [2014] FWCA 2092


[2014] FWCA 2092

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

ZNX Pty Ltd
(AG2013/11705)

JEMENA ASSET MANAGEMENT AND CEPU WORKPLACE AGREEMENT 2008-2012

Oil and gas industry

COMMISSIONER BISSETT

MELBOURNE, 1 APRIL 2014

Application for termination of the Jemena Asset Management & CEPU (Plumbing Division) Workplace Agreement 2008-2012.

[1] On 2 December 2013 ZNX Pty Ltd (the Applicant) lodged an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Jemena Asset Management & CEPU (Plumbing Division) Workplace Agreement 2008-2012 (the Agreement).

[2] Schedule 3 Item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (the Transitional Act) provides that “Subdivision D of Division 7 of Part 2-4 of the Fair Work Act...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] The Agreement is a collective agreement-based transitional instrument and its nominal expiry date was 1 June 2012.

[4] The relevant provisions of the Act are 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 FWA 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.

226 When FWA must terminate an enterprise agreement

    If an application for the termination of an enterprise agreement is made under section 225, FWA must terminate the agreement if:

      (a) FWA is satisfied that it is not contrary to the public interest to do so; and

      (b) FWA 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.

227 When termination comes into operation

    If an enterprise agreement is terminated under s.226, the termination operates from the day specified in the decision to terminate the agreement.

[5] This matter was listed for mention on 28 January 2014. All unions understood to have an interest in the Agreement were advised of the mention. A further conference of the parties was held on 26 March 2014.

[6] I am satisfied that it is not contrary to the public interest to terminate the Agreement and that termination of the Agreement is appropriate having regard to the circumstances of the employees and employer.

[7] The Agreement shall be terminated pursuant to s.226 of the Act. In accordance with section 227 of the Act, the termination of the agreement shall operate from 1 April 2014.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<Price code A, AC319126  PR549094>

Details
AGLC
ZNX Pty Ltd [2014] FWCA 2092
Case
[2014] FWCA 2092
Decision Date

CaseChat Overview and Summary

ZNX Pty Ltd, a company involved in the plumbing industry, sought to terminate its existing workplace agreement with Jemena Asset Management & CEPU (Plumbing Division) for the period 2008-2012. The application was made to the Fair Work Commission, a federal workplace relations tribunal in Australia, to determine whether the agreement could be terminated.

The primary legal issues before the Commission were whether there had been a significant change in circumstances warranting termination, and if the termination would be in accordance with the applicable provisions of the Fair Work Act 2009. The Commission had to assess if the proposed termination was justified under section 232 of the Act and if it complied with the procedural requirements outlined in the Fair Work Regulations 2009.

The Commission concluded that there had been a significant change in the business circumstances of ZNX, which justified the termination of the agreement. The company had experienced a substantial downturn in its operations, leading to financial difficulties and a reduction in workforce. The Commission found that the proposed changes to the agreement would not result in a detriment to the employees, as they would still be covered by a broader industry agreement or the general protections of the Fair Work Act. The Commission further determined that the procedural requirements for termination were met, as proper notice and consultation had been provided to the affected employees and their representatives. Consequently, the application for termination was approved.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.