Terminate Enterprise Agreements

Each of these comprehensive decisions and Murdoch, which had different real similarities, allowed the Commission to find that any decision to keep these agreements alive was contrary to the public interest. First, any agreement was the subject of intense negotiations in good faith for several years between the parties, which resulted in the abandonment of the employer`s request to terminate their contracts, as there was little chance of reaching an agreement. Second, the applicants were able to demonstrate that the agreements had a significant influence on the economic viability of the company. In Murdoch`s case, between 2013 and 2016, the university grew from a surplus of $36 million to a deficit of $5.4 million. In other words, a loss of $39 million in 3 years. Similarly, Griffin Coal showed that the coal mine had not made money for 10 years and lost money for every tonne of coal produced. Finally, in the application of the public interest test[6], the Commission found that, in the absence of a short-term or long-term prospect of agreement, there was no obligation to keep an institution open if the impact of costs sent it to the wall. Fact 4: What happens if the nominal expiry date of an enterprise agreement expires? Without these three elements, we advise that any attempt to terminate an agreement is probably not at stake. There is a way for an employer, worker or union that is covered by an expired enterprise agreement to ask the FWC to terminate the contract. Under Section 225 of the Fair Work Act 2009 (Cth), the Fair Work Commission must terminate an expired enterprise contract when it is executed: Decision AGL Loy Yang In 2017, the full bank of the FWC confirmed once again the termination of an enterprise agreement that affects the ongoing negotiations (see [2017] FWCFB 1019). The incident involved employees of the Loy Yang coal mine and the nearby power plant (which supplied 30% of Victoria`s electricity). The parties had been in negotiations for about 15 months. During this period, the employer had sought FWC assistance under the 240 FW Act (which resulted in 14 conferences with the participation of the FWC), the union had applied in good faith to the FWC for bargaining mandates and there were two union requests for authorized protected action votes.

To succeed in any request to terminate an enterprise contract after the nominal expiry date, an employer must inform the FWC of the termination of the enterprise contract: if a maintenance contract becomes at more profitable times the threat of the sustainability – or even the sustainability – of a company, what can be done? There are two ways to terminate an enterprise contract: Greenfields agreements are permitted when workers` organizations covered by the agreement are allowed to represent the interests of the majority of workers, which is in the public interest. It is interesting to note that in this case, the employer had accepted a clause in the enterprise agreement that, if the employer wished to terminate the agreement, it would maintain the essential conditions established until a replacement agreement was replaced. This is what came into play when the FWC reviewed the termination application and AGL had to respect the undertaking.