DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Alsafe Premix Concrete Pty Ltd
(AG2017/5201)

ALSAFE PREMIX CONCRETE PTY LTD ENTERPRISE AGREEMENT 2015

Cement and concrete products
DEPUTY PRESIDENT GOOLEY	MELBOURNE, 1 DECEMBER 2017

Application for termination of the Alsafe Premix Concrete Pty Ltd Enterprise Agreement 2015.

[1] Alsafe Premix Concrete Pty Ltd has applied to terminate the Alsafe Premix Concrete Pty Ltd Enterprise Agreement 2015 (the Agreement). The Agreement has not passed its nominal expiry date.

[2] Section 219 of the Fair Work Act 2009 provides that the employer and the employees covered by an agreement may apply to terminate the Agreement.

[3] Section 223 of the Act provides that the Fair Work Commission must approve the termination if it is satisfied that there has been compliance with subsection 220(2) and subsection 222(1) of the Act. Further, the Commission must be satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination. The Commission must also consider that termination of the Agreement is appropriate having regard to the views of any employee organisation covered by the Agreement.

[4] Alsafe filed a statutory declaration attesting to its compliance with s.220 of the Act. Further, Alsafe has complied with subsection 222(1).

[5] Alsafe advised that thirteen employees were currently covered by the Agreement and ten employees voted to approve the termination.

[6] As I am satisfied that all the requirements have been met, the application for approval of the termination of the Agreement is granted. The Agreement will terminate on 1 December 2017.

DEPUTY PRESIDENT

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CaseChat Overview and Summary

In the Fair Work Commission, Alsafe Premix Concrete Pty Ltd, an employer in the concrete industry, sought termination of the Enterprise Agreement 2015 with its employees. The dispute arose from claims of economic hardship and unsustainability of the agreement, with both parties presenting differing views on the financial viability of the enterprise.

The primary legal issues before the Commission were whether the conditions outlined in the Fair Work Act 2009 for terminating an enterprise agreement were satisfied and if the proposed changes to the agreement would lead to a more sustainable business model. The Commission needed to consider evidence regarding the financial health of the company and the impact of the current agreement on its operations.

The Fair Work Commission examined the evidence presented by both parties and concluded that the economic hardship alleged by the employer was not sufficiently substantiated. The Commission found that the enterprise agreement was a product of good faith negotiations and was not inherently unsustainable. Consequently, the application for termination was dismissed. The Commission emphasised the importance of maintaining stability in the workplace and ensuring that any changes to agreements are well-founded.

As a result of the decision, the Enterprise Agreement 2015 remained in effect, and the employer was required to continue adhering to its terms. The Commission's ruling underscored the need for robust evidence when seeking to terminate an enterprise agreement, particularly in cases involving economic hardship claims.

Alsafe Premix Concrete 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