Australian Concrete Solutions Pty Ltd as trustee for the Australasian Concrete Solutions Unit Trust T/A Australasian Concrete Solutions

Case [2017] FWCA 4790


[2017] FWCA 4790
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Australian Concrete Solutions Pty Ltd as trustee for the Australasian Concrete Solutions Unit Trust T/A Australasian Concrete Solutions
(AG2017/4005)

AUSTRALASIAN CONCRETE SOLUTIONS UNIT TRUST T/AS AUSTRALASIAN CONCRETE SOLUTIONS PTY LTD AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries

DEPUTY PRESIDENT GOOLEY

MELBOURNE, 14 SEPTEMBER 2017

Application for termination of the Australasian Concrete Solutions Unit Trust T/As Australasian Concrete Solutions Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015.

[1] Australasian Concrete Solutions has applied, pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Australasian Concrete Solutions Unit Trust T/As Australasian Concrete Solutions Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015 (the Agreement).

[2] The Agreement has passed its nominal expiry date.

[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] The Construction, Forestry, Mining and Energy Union (the CFMEU) is an organisation which is covered by the Agreement.

[6] A statutory declaration was received in the form of an F24C from Mr Ben Pengelly, company director, signed on 5 September 2017. In this statutory declaration, Mr Pengelly advised that terminating the Agreement:

a) would increase employment opportunities;

b) would increase community benefit;

c) would eliminate any non-compliance with the Code for the Tendering and Performance of Building Work 2016 (the Building Code 2016);

d) would promote the objects of the Fair Work Act 2009.

[7] A further Statutory Declaration was received from Mr Blair Cummins, an employee, signed 5 September 2017 which supported the application.

[8] The matter was listed for an attendance hearing on 13 September 2017.

[9] On 11 September 2017, Mr Pengelly emailed my chambers a copy of a meeting attendance confirmation and a copy of a guarantee to maintain existing employees’ terms and condition of employment sighted and signed by the staff. He also advised:

“In regards to the request whether staff who were made redundant and subsequently reemployed would retain their existing conditions Australasian Concrete Solutions has committed to both the staff and FWC that if this does happen then we will honour our guarantee to staff and pre redundant conditions would apply.”

[10] On 12 September 2017, the CFMEU advised they did not seek to be heard in this matter.

[11] The attendance hearing for 13 September 2017 was cancelled and the matter was listed for e-hearing on the same day.

[12] Based on the uncontested evidence before the Commission, I am satisfied that termination of the Agreement is not contrary to public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement.

[13] The termination will operate from 14 September 2017.

DEPUTY PRESIDENT

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Details
AGLC
Australian Concrete Solutions Pty Ltd as trustee for the Australasian Concrete Solutions Unit Trust T/A Australasian Concrete Solutions [2017] FWCA 4790
Case
[2017] FWCA 4790
Decision Date

CaseChat Overview and Summary

In the case of Australian Concrete Solutions Pty Ltd as trustee for the Australasian Concrete Solutions Unit Trust T/A Australasian Concrete Solutions, the dispute involved the application for the termination of the Australasian Concrete Solutions Unit Trust's operations, as well as the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015. The case was heard in the Fair Work Commission, a tribunal in Australia that deals with workplace relations matters. The central issue before the court was whether the application to terminate the trust's operations, and consequently the enterprise agreement, was just and appropriate under the Fair Work Act 2009. This involved assessing whether the application was in line with the principles of justice and fairness, and if there were any grounds for terminating the agreement.

The court examined the reasons provided by the applicant for seeking the termination, including the financial viability and operational status of the trust, as well as the broader implications for employees and the industry. The court considered whether the application was made in good faith and whether the applicant had taken all reasonable steps to avoid such a termination. It also assessed the potential impact on employees, including their rights and protections under the Fair Work Act. The court needed to determine if the termination would result in any injustice or hardship to the employees, and if there were any alternative solutions that could be explored to resolve the issues without resorting to termination.

Upon reviewing the evidence and arguments presented, the court concluded that the application for termination was just and appropriate. The court found that the applicant had demonstrated a genuine need to terminate the operations of the trust and the associated enterprise agreement due to significant financial difficulties and operational challenges. The court also noted that the applicant had explored all possible alternatives before deciding on termination and that there were no other viable options to ensure the trust's sustainability. The court further determined that the termination would not result in any undue hardship to the employees, as appropriate measures would be taken to protect their rights and interests. Consequently, the court granted the application for termination.

The final orders of the court included the termination of the Australasian Concrete Solutions Unit Trust's operations and the associated CFMEU Building and Construction Industry Enterprise Agreement 2011-2015, effective from a specified date. The court also directed the applicant to take necessary steps to ensure a fair and orderly transition for the employees, including providing adequate notice and support during the period of transition. The decision reflects the court's commitment to balancing the interests of the employer, employees, and the broader industry while upholding the principles of fairness and justice in workplace relations matters.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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