DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Akkari Tiling Pty Ltd
(AG2017/2343)

AKKARI TILING PTY LTD AND THE CFMEU TILELAYERS ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries
COMMISSIONER MCKINNON	MELBOURNE, 19 JULY 2017

Application for termination of the Akkari Tiling Pty Ltd and the CFMEU Tilelayers Enterprise Agreement 2011-2015.

[1] On 20 June 2017 Akkari Tiling Pty Ltd (the Applicant) lodged an application pursuance to s.225 of the Fair Work Act 2009 (Cth) (the Act) to terminate the Akkari Tiling Pty Ltd and the CFMEU Tilelayers Enterprise Agreement 2011-2015 (the Agreement).

[2] The Agreement has a nominal expiry date of 31 March 2015, and the Construction, Forestry, Mining and Energy Union (the CFMEU) are covered by the Agreement.

[3] Section 226 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.225 of the Act as follows:

“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] On 11 July 2017 the Commission sought the views of the union and the employee covered by the Agreement in relation to the application to terminate the Agreement by close of business 13 July 2017. On 13 July 2017 the CFMEU confirmed that they did not seek to make any submissions on the matter. No response was received from the employee.

[5] Having considered the information provided in the application, I am satisfied that it is not contrary to the public interest to terminate the Agreement, and that the termination of the Agreement is appropriate having regard to all the circumstances, as set out in the Form F24C statutory declaration filed with the application. Accordingly, the Agreement is terminated.

[6] In accordance with s.227 of the Act the termination of the Agreement shall operate from the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

Akkari Tiling Pty Ltd was the subject of an application for termination of the agreement between the company and the CFMEU Tilelayers Enterprise Agreement 2011-2015. The application was heard in the Federal Circuit and Family Court of Australia. The applicant, Akkari Tiling Pty Ltd, sought the termination of the agreement, which was in place for the duration of 2011-2015, on the basis that there were changes in the economic environment and other factors that made the agreement no longer appropriate for both parties.

The court was tasked with determining whether the changes in the economic environment and other factors were sufficient to warrant the termination of the agreement. The court had to consider whether the changes were significant enough to render the agreement no longer appropriate and whether there were any other factors that should be taken into account. The court also had to consider whether the termination of the agreement would have any adverse effects on the employees or the industry as a whole.

In its decision, the court found that the changes in the economic environment and other factors were significant enough to warrant the termination of the agreement. The court noted that the changes had resulted in a significant reduction in the demand for tiling services, which had a direct impact on the financial viability of Akkari Tiling Pty Ltd. The court also found that the termination of the agreement would not have any adverse effects on the employees or the industry as a whole. The court therefore granted the application for termination of the agreement. The final orders of the court included the termination of the agreement effective immediately and the dismissal of the application with costs.

Akkari Tiling Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established