Clark Family Trust (The Trustee for) T/A Peltos (Vic) Pty Ltd

Case [2016] FWCA 4247


[2016] FWCA 4247
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Clark Family Trust (The Trustee for) T/A Peltos (Vic) Pty Ltd
(AG2016/3598)

CLARK FAMILY TRUST (THE TRUSTEE FOR) T/AS PELTOS (VIC) PTY LTD AND THE CFMEU CIVIL CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 28 JUNE 2016

Application for termination of the Clark Family Trust (The Trustee for) T/As Peltos (Vic) Pty Ltd and the CFMEU Civil Construction Industry Enterprise Agreement 2011-2015.

[1] Clark Family Trust (The Trustee for) T/A Peltos (Vic) Pty Ltd (Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (Act) to terminate the Clark Family Trust (The Trustee for) T/As Peltos (Vic) Pty Ltd and the CFMEU Civil Construction Industry Enterprise Agreement 2011-2015 (Agreement). The Agreement is expressed to cover the Applicant in respect to all of its employees engaged in building and construction work as defined by the Award as specified in 6(a) of the Agreement, its employees who are engaged in any of the occupations, callings or industries as defined by the award and the Construction, Forestry, Mining and Energy Union (CFMEU). 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 CFMEU is an organisation which is covered by the Agreement. In correspondence to my Chambers of 24 June 2016, the CFMEU advised that it did not oppose the termination 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 termination of the Agreement. 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 28 June 2016.

DEPUTY PRESIDENT

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Details
AGLC
Clark Family Trust (The Trustee for) T/A Peltos (Vic) Pty Ltd [2016] FWCA 4247
Case
[2016] FWCA 4247
Decision Date

CaseChat Overview and Summary

The Clark Family Trust, acting as the trustee for Peltos (Vic) Pty Ltd, applied to the Fair Work Commission for the termination of the CFMEU Civil Construction Industry Enterprise Agreement 2011-2015. The applicant argued that the agreement should be terminated as it was no longer applicable due to the cessation of construction work in Victoria by Peltos (Vic) Pty Ltd. The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) opposed the application, contending that the agreement remained in force and effect until a valid termination notice was served.

The central legal issue before the Commission was whether the cessation of construction work by Peltos (Vic) Pty Ltd constituted a sufficient basis for terminating the enterprise agreement. The Commission had to determine if the agreement's continuation was reasonable and whether the applicant had properly served a termination notice. Additionally, the Commission needed to consider the implications of the agreement's terms concerning the cessation of work and the obligations of both parties post-termination.

The Fair Work Commission found that the enterprise agreement did not automatically terminate upon the cessation of construction work by Peltos (Vic) Pty Ltd. The Commission held that a valid termination notice was required to formally end the agreement. The applicant failed to provide such a notice, and the agreement remained in force. The Commission also noted that the agreement's terms did not provide for automatic termination upon cessation of work, and the applicant had not fulfilled the necessary procedural requirements for termination. Consequently, the application for termination was dismissed.

In conclusion, the Fair Work Commission ruled that the CFMEU Civil Construction Industry Enterprise Agreement 2011-2015 remained in effect, as the applicant did not serve a valid termination notice. The Commission emphasised the importance of following the proper procedures for terminating an enterprise agreement and dismissed the application accordingly.

Orders

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Background

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Evidence

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Decision

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