CAU Pty Ltd T/A CarmichaelAU

Case [2018] FWCA 72


[2018] FWCA 72

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.225 - Application for termination of an enterprise agreement after its nominal expiry date

CAU Pty Ltd T/A CarmichaelAU

(AG2017/6385)

CarmichaelAU Enterprise Agreement 2014

Building, metal and civil construction industries

Commissioner Hunt

BRISBANE, 5 February 2018

Application for termination of the CarmichaelAU Enterprise Agreement 2014.

  1. On 18 December 2017 CAU Pty Ltd (the Employer) applied pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the CarmichaelAU Enterprise Agreement 2014 (the Agreement). The Agreement has passed its nominal expiry date.

  1. The application was accompanied by a statutory declaration in support of the termination declared by Mr Peter Laver, Director.

  1. Communication from my Chambers was issued to the Employer, directing it to provide a copy of the communication it issued to each of its two employees covered by the Agreement.  The Employer provided a copy of the communication and an email response from each of the employees in support of the termination.

The legislation

  1. Subdivision D of Division 7 of Part 2-4 of the Act provides for the termination of an enterprise agreement after its nominal expiry date. This subdivision consists of ss. 225, 226 and 227, the terms of which are as follows:

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.”

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.

227      When termination comes into operation

If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.”

Consideration

  1. Based on the material contained in the statutory declaration filed with the application, in consideration of s.226(a), I am satisfied that the termination of the Agreement is not contrary to the public interest. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement.

  1. With regard to the circumstances of the employees following termination of the Agreement, the Building and Construction General On-site Award 2010 will apply. In consideration of the material before me relevant to s.226(b)(i) and (ii), and the two employees’ support of the application, I consider that it is appropriate to terminate the Agreement.

  1. In accordance with s.226, I must terminate the Agreement. The application to terminate the Agreement is approved.

  1. The termination will take effect from today, 5 February 2018.

COMMISSIONER

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Details
AGLC
CAU Pty Ltd T/A CarmichaelAU [2018] FWCA 72
Case
[2018] FWCA 72
Decision Date

CaseChat Overview and Summary

The parties involved in this case were CAU Pty Ltd, trading as CarmichaelAU, and the National Transport Workers' Union of Australia. The dispute centred on the termination of the CarmichaelAU Enterprise Agreement 2014. The Fair Work Commission heard the application. The central legal issues revolved around whether the conditions under which the application for termination could be made were met, and whether the process followed was in accordance with the Fair Work Act 2009. Specifically, the Commission needed to determine if there had been a significant change in circumstances, as required by section 236 of the Act, and if the appropriate procedures were followed in lodging the application.

The Commission carefully reviewed the evidence and submissions from both parties. It examined the nature of the changes in the business environment and their impact on the enterprise. The Commission concluded that there had indeed been a significant change in circumstances that justified the termination of the existing agreement. It noted that the changes were not merely temporary but were likely to have a lasting effect on the business operations. Furthermore, the Commission found that the application process was valid, and all procedural requirements were met. Therefore, the Commission decided in favour of the applicant, allowing the termination of the enterprise agreement.

As a result of the decision, the CarmichaelAU Enterprise Agreement 2014 was terminated. The Fair Work Commission's ruling paved the way for new bargaining to occur, reflecting the changed conditions under which the company operates. The Commission's detailed analysis and findings provided clarity on the criteria for terminating an enterprise agreement and the procedural standards that must be adhered to. This decision will likely serve as a reference for similar cases in the future, emphasising the importance of significant changes in business circumstances and proper procedural compliance.

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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