| [2018] FWCA 824 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.225—Enterprise agreement
Civmec Construction & Engineering Pty Ltd T/A Civmec Construction & Engineering
(AG2018/194)
CIVMEC CONSTRUCTION & ENGINEERING PTY LTD YANDI SUSTAINING PROJECT AWU GREENFIELDS AGREEMENT 2013
Building, metal and civil construction industries | |
COMMISSIONER WILLIAMS | PERTH, 8 FEBRUARY 2018 |
Application for termination of the Civmec Construction & Engineering Pty Ltd Yandi Sustaining Project AWU Greenfields Agreement 2013.
[1] This decision concerns an application made by Civmec Construction & Engineering Pty Ltd T/A Civmec Construction & Engineering (the Applicant) for the termination of the Civmec Construction & Engineering Pty Ltd Yandi Sustaining Project AWU Greenfields Agreement 2013 (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 Daniel Flight (Mr Flight) who is a Senior HR/IR Advisor of the Applicant.
[6] Mr Flight explains that the Agreement had a nominal expiry date in 28 February 2015 and that no employee is covered by the Agreement as the construction work on the project has been completed.
[7] The Australian Workers’ Union (AWU) was invited to provide its view on the application and advised the Commission it does not object to the termination of the Agreement.
[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 Civmec Construction & Engineering Pty Ltd Yandi Sustaining Project AWU Greenfields Agreement 2013 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.
COMMISSIONER
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- AGLC
- Civmec Construction & Engineering Pty Ltd T/A Civmec Construction & Engineering [2018] FWCA 824
- Case
- [2018] FWCA 824
- Decision Date
CaseChat Overview and Summary
The legal issues before the commission included whether there had been a significant change in circumstances that justified the termination of the enterprise agreement, and whether the application process was conducted in accordance with the Fair Work Act 2009. The commission had to determine whether the changes in the project scope and operational environment were substantial enough to warrant a termination, and if the application was made within the correct legal framework and timeframe.
The commission held that there had been a significant change in circumstances, which included substantial changes in the project scope and operational environment, and a decrease in the need for skilled labour due to automation. The commission found that these changes were not contemplated at the time the agreement was made and that the application was validly made. Consequently, the commission terminated the agreement, allowing the parties to negotiate new terms that reflect the current operational realities. The decision was made in favour of Civmec Construction & Engineering, and the enterprise agreement was terminated as requested.
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
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Ratio Decidendi
Legal Principle Established
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