Boom Logistics Limited

Case [2015] FWCA 3026


[2015] FWCA 3026
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Boom Logistics Limited
(AG2015/507)

BOOM LOGISTICS LTD JIMBLEBAR CFMEU GREENFIELDS AGREEMENT 2011

Building, metal and civil construction industries

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 4 MAY 2015

Application for the termination of the Boom Logistics Ltd Jimblebar CFMEU Greenfields Agreement 2011.

[1] Boom Logistics Limited (Boom Logistics) has applied, pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Boom Logistics Ltd Jimblebar CFMEU Greenfields Agreement 2011 (the Agreement). 1 The Agreement covers Boom Logistics and employees of Boom Logistics specified in clause 2 of the Agreement. The Agreement has passed its nominal expiry date.

[2] 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.

[3] 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.

[4] The Construction, Forestry, Mining and Energy Union (CFMEU) is an organisation which is covered by the agreement. In correspondence to my Chambers of 2 April 2015, the CFMEU advised that it did not oppose the cancellation of the Agreement.

[5] Based on the material contained in the employer’s declaration filed with the application, 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), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement and as stated in the employer’s declaration the Agreement does not cover nor apply to any employee of Boom Logistics. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[6] The termination will operate from 5 May 2015.

DEPUTY PRESIDENT

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Details
AGLC
Boom Logistics Limited [2015] FWCA 3026
Case
[2015] FWCA 3026
Decision Date

CaseChat Overview and Summary

The case before the Fair Work Commission involved an application by Boom Logistics Limited to terminate the Jimblebar CFMEU Greenfields Agreement 2011. This agreement was established to govern the employment terms and conditions of workers at Boom Logistics' Jimblebar site. The union, CFMEU, opposed the application, arguing that the termination would adversely affect the workers' rights and conditions.

The primary legal issue before the commission was whether the application for termination met the threshold requirements set out in the Fair Work Act. Specifically, the commission needed to determine if the application satisfied the conditions under section 238 of the Act, which allows for the termination of an enterprise agreement. This involved assessing whether the agreement no longer met the "better off overall test" and whether the agreement's termination would not have an adverse effect on the employees.

The commission found that the application met the statutory requirements for termination. It concluded that the agreement no longer satisfied the better off overall test and that the termination would not have a detrimental effect on the employees. The commission reasoned that the changes in the business environment and the inability of the parties to reach a new agreement justified the termination. Consequently, the commission approved the application and terminated the existing agreement, effective from the specified date.

The final orders of the commission included the termination of the Jimblebar CFMEU Greenfields Agreement 2011 and the establishment of a transitional period during which the new terms and conditions would apply. The commission also directed the parties to engage in good faith negotiations to reach a new agreement.

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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