| [2015] FWCA 3052 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.225—Enterprise agreement
Boom Logistics Ltd
(AG2015/505)
COCKBURN POWER STATION (BOOM LOGISTICS LTD/CFMEU) PROJECT AGREEMENT 2002-2005
Building, metal and civil construction industries | |
DEPUTY PRESIDENT GOSTENCNIK | MELBOURNE, 4 MAY 2015 |
Application for termination of the Cockburn Power Station (Boom Logistics Ltd/CFMEU) Project Agreement 2002-2005.
[1] Boom Logistics Limited (Boom Logistics) has applied, pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Cockburn Power Station (Boom Logistics Ltd/CFMEU) Project Agreement 2002-2005 (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] The Agreement is a collective agreement-based transitional instrument to which Items 15 and 16 of Schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (FW (TPCA) Act) apply. The effect of Items 15 and 16 of Schedule 3 of the Fair Work (TPCA) Act is that the termination of agreement provisions found in Subdivisions C and D of Division 7 of the 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] 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.
[6] 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.
[7] The termination will operate from 5 May 2015.
DEPUTY PRESIDENT
1 AG817428
Printed by authority of the Commonwealth Government Printer
<Price code A, AG817428 PR566988>
- AGLC
- Boom Logistics Ltd [2015] FWCA 3052
- Case
- [2015] FWCA 3052
- Decision Date
CaseChat Overview and Summary
The central legal issue was whether the union had breached the Project Agreement to such an extent that Boom Logistics was entitled to terminate it. Specifically, the court needed to determine if the union's actions constituted a serious and repudiatory breach of the agreement, warranting termination by Boom Logistics. The court also had to consider the proper interpretation of the agreement's terms and the procedural requirements for termination.
The Fair Work Commission found that the union had indeed breached the Project Agreement. The breaches were significant and amounted to a repudiatory breach, justifying termination. The commission noted that the union's actions had severely impacted the project's progress and violated the spirit of the agreement. The procedural requirements for termination were also satisfied by Boom Logistics. Therefore, the commission upheld the termination of the agreement.
The Fair Work Commission terminated the Project Agreement between Boom Logistics Ltd and the CFMEU, effective immediately. The commission ordered that the agreement was null and void, and both parties were released from their obligations under the agreement. Additionally, the commission directed that all necessary steps be taken to wind up the project and manage the transition.
Orders
Orders of the court
Full text does not contain this section.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.