2BK Pty Ltd Summary | CaseChat AU

[2013] FWCA 7939

FAIR WORK COMMISSION

DECISION

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

2BK Pty Ltd
(AG2013/9551)

2BK PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2011-2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 10 OCTOBER 2013

Application for termination of the 2BK Pty Ltd and CFMEU Union Collective Agreement 2011-2015.

[1] On 23 September 2013 2BK Pty Ltd filed an application pursuant to s.222 of the Fair Work Act 2009 (“the Act”)to terminate the 2BK Pty Ltd and CFMEU Union Collective Agreement 2011-2015 (“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] The application was supported by a statutory declaration from the employer that declared, among other things, that the employees were notified of the time and place of the vote and that a ballot of employees supported the termination. Based on the material that is before me including the statutory declaration provided by the employer, 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 today.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

2BK Pty Ltd recently applied to the Fair Work Commission (FWC) for termination of the 2BK Pty Ltd and CFMEU Union Collective Agreement 2011-2015. The application arose from a dispute between the company and the union regarding the implementation of the agreement and its terms. The FWC was tasked with determining whether the agreement could be terminated and, if so, under what conditions.

The legal issues before the FWC were whether there had been a change in circumstances that justified termination, and if so, whether the change was significant enough to warrant early termination. The company argued that changes in the business environment and operational needs had made the agreement unworkable, while the union contended that the agreement remained valid and should be upheld.

The FWC found that significant changes in the business environment and operational needs did warrant termination. The commission concluded that the changes were not merely minor adjustments but substantial shifts that rendered the agreement inequitable and impractical. The FWC therefore allowed the application for early termination of the agreement, effective from a specified date. The decision also outlined the terms under which the termination would be implemented, ensuring a smooth transition for both parties.

2BK Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established