| [2020] FWCA 5086 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument
Austar Investments (Aust) Pty Ltd
(AG2020/2723)
AUSTAR INVESTMENTS (AUST) P/L T/AS DONGGA’S PLASTER AND CFMEU BUILDING AND CONSTRUCTION INDUSTRY COLLECTIVE BARGAINING AGREEMENT 2002-2005
Building, metal and civil construction industries | |
DEPUTY PRESIDENT GOSTENCNIK | MELBOURNE, 22 SEPTEMBER 2020 |
Application for termination of the Austar Investments (Aust) P/L T/as Dongga’s Plaster and CFMEU Building and Construction Industry Collective Bargaining Agreement 2002-2005.
[1] On 10 September 2020 Austar Investments (Aust) Pty Ltd (Applicant) applied, pursuant to Schedule 3, Item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Transitional Act) to terminate the Austar Investments (Aust) P/L T/as Dongga’s Plaster and CFMEU Building and Construction Industry Collective Bargaining Agreement 2002-2005 (Agreement). The Agreement covers the Applicant, the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) and employees of the employer who are eligible to be members of the CFMMEU as specified in clause 4 of the Agreement. The Agreement has passed its nominal expiry date.
[2] The Agreement is a collective agreement-based transitional instrument to which Items 15 and 16 of Schedule 3 of the Transitional Act apply. The effect of Items 15 and 16 of Schedule 3 of the Transitional Act is that the termination of agreement provisions found in Subdivisions C and D of Division 7 of the Fair Work Act 2009 (Act) apply to the Agreement as though a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.
[3] Section 225 of the Act provides:
“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 the FWC 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.”
[4] Section 226 of the Act provides:
“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.”
[5] In support of the application, Mr G Dong of the Applicant provided a declaration dated 10 September 2020. The declaration states, inter alia, that the Applicant has ceased trading and there are no employees covered by the Agreement. It is further declared that termination of the Agreement will have no effect on the parties covered by the Agreement.
[6] As mentioned above, the CFMMEU is an organisation which is covered by the Agreement. In correspondence to my Chambers on 22 September 2020, the CFMMEU advised that it did not wish to be heard in relation to this application.
[7] Based on the material contained in the employer’s declaration, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii) of the Act, I consider that it is appropriate to terminate the Agreement. There are no other circumstances apparent to me which would militate against this conclusion. As the matters in s.226(a) and (b) are satisfied, the Agreement must be terminated and I terminate the Agreement.
[8] The termination will operate from 22 September 2020.
DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer
<AG836246 PR722985>
- AGLC
- Austar Investments (Aust) Pty Ltd [2020] FWCA 5086
- Case
- [2020] FWCA 5086
- Decision Date
CaseChat Overview and Summary
The FWC considered the evidence presented by both parties, including the reasons provided by Austar for seeking termination, the response from the CFMEU, and the broader context of the industry and the agreement. The Commission found that Austar had demonstrated a genuine and reasonable belief that it was in the best interests of its employees to terminate the agreement. The FWC concluded that the application was made in good faith and that it was appropriate to terminate the agreement due to significant changes in the business environment and the impact of the agreement on the company's financial viability. The FWC also found that there was a genuine dispute over the agreement’s terms, as Austar and the CFMEU had different views on the agreement’s suitability given the current business conditions.
As a result of the FWC's decision, the Building and Construction Industry Collective Bargaining Agreement 2002-2005 between Austar Investments (Aust) Pty Ltd and the CFMEU was terminated. The termination took effect from the date specified in the FWC's order.
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