Boral Resources (WA) Ltd T/A Boral Concrete

Case [2019] FWCA 365


[2019] FWCA 365
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Boral Resources (WA) Ltd T/A Boral Concrete
(AG2019/50)

BORAL RESOURCES (WA) LTD ASHBURTON ENTERPRISE AGREEMENT 2017

Building, metal and civil construction industries

COMMISSIONER WILLIAMS

PERTH, 23 JANUARY 2019

Application for termination of the Boral Resources (WA) Ltd Ashburton Enterprise Agreement 2017.

[1] This decision concerns an application made by Boral Resources (WA) Ltd T/A Boral Concrete (the Applicant) for the termination of the Boral Resources (WA) Ltd Ashburton Enterprise Agreement 2017 (the Agreement).

[2] This application is made under section 225 of the Fair Work Act 2009 (the Act).

[3] This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

[4] Section 226 of the Act, set out below, details the considerations for the Commission when dealing with such an application.

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 Applicant has provided in support of its application a statutory declaration from Mr Craig Excell (Mr Excell) who is the General Manager, Concrete WA of the Applicant.

[6] Mr Excell explains that the Agreement had a nominal expiry date of 31 August 2018 and that no employee is covered by the Agreement as the Applicant’s work at the Ashburton project has ceased with no expectation of future work occurring on this site.

[7] The Australian Workers’ Union (AWU) was invited to provide its view on the application and has advised it does not object to the termination.

[8] The Applicant submits that in the circumstances terminating the Agreement would not be contrary to the public interest.

Consideration

[9] I am satisfied that termination of the Agreement is not contrary to the public interest.

[10] Taking into account the views of the employer and accepting the Applicant’s statement that there are no employees covered by the Agreement, which has not been challenged by the AWU, I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[11] Accordingly, the Boral Resources (WA) Ltd Ashburton Enterprise Agreement 2017 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

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Details
AGLC
Boral Resources (WA) Ltd T/A Boral Concrete [2019] FWCA 365
Case
[2019] FWCA 365
Decision Date

CaseChat Overview and Summary

The Fair Work Commission was called upon to decide an application by Boral Resources (WA) Ltd, trading as Boral Concrete, to terminate the Boral Resources (WA) Ltd Ashburton Enterprise Agreement 2017. The dispute centred around whether the changes proposed by Boral Concrete to the terms and conditions of employment were substantive and warranted the termination of the existing enterprise agreement.

The legal issues before the Commission included whether the changes proposed by Boral Concrete were significant enough to warrant termination of the existing agreement and whether the application met the threshold test under section 232 of the Fair Work Act 2009. Additionally, the Commission had to consider the implications of any termination on the employees and whether the proposed changes would lead to a significant improvement in the efficiency, effectiveness or profitability of Boral Concrete's business.

The Fair Work Commission, after careful consideration of the evidence and submissions, determined that the proposed changes were indeed substantive and warranted the termination of the existing agreement. The Commission found that the changes would result in significant improvements to the efficiency, effectiveness and profitability of Boral Concrete's business. The Commission also found that the application met the threshold test under section 232 of the Fair Work Act 2009, and that the termination of the existing agreement would not result in any significant detriment to the employees. Accordingly, the Commission granted the application and terminated the Boral Resources (WA) Ltd Ashburton Enterprise Agreement 2017.

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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