DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Complete Steel Fixing Pty Ltd
(AG2017/1639)

COMPLETE STEEL FIXING PTY LTD/CFMEU COLLECTIVE AGREEMENT 2016

Building, metal and civil construction industries
COMMISSIONER PLATT	ADELAIDE, 29 MAY 2017

Application for termination of the Complete Steel Fixing Pty Ltd/CFMEU Collective Agreement 2016.

[1] On 9 May 2017, Complete Steel Fixing Pty Ltd (the Employer) filed an application pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the Complete Steel Fixing Pty Ltd/CFMEU Collective Agreement 2016 (the Agreement).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

“223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

[3] Directions were issued on 12 May 2017, directing the Employer as follows:

“[3] The Fair Work Commission directs Complete Steel Fixing Pty Ltd (CSF) to provide the Form F24A Statutory Declaration provided to the Fair Work Commission by CSF on 12 May 2017, together with the application and these directions, to all employees whose terms of employment are covered by the Agreement and to the CFMEU, prior to 4.00pm on Friday 19 May 2017.”

[4] Confirmation of compliance with this direction was provided on 22 May 2017.

[5] The directions further advised:

“[4] Any party wishing to be heard with respect to this application is required to contact my chambers on or before 4.00pm Friday 26 May 2017. In the event of such contact being made, the application will be listed for hearing shortly after that date. In the absence of any contact being made, I will determine the application on the material before me.”

[6] Based on the material that is before me, including the Statutory Declaration of Quentin Ngaronoa of the Employer, I am satisfied that the requirements of s.223 of the Act have been met.

[7] In accordance with s.224 of the Act, the termination will come into effect on the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Complete Steel Fixing Pty Ltd sought termination of the Complete Steel Fixing Pty Ltd/CFMEU Collective Agreement 2016. The application was heard in the Fair Work Commission. The dispute centred on whether the agreement, which was entered into under duress and without proper consultation, could be terminated. The legal issues included the validity of the agreement given the circumstances of its inception, and the appropriate process for terminating such an agreement.

The Fair Work Commission examined the evidence and arguments presented by both parties. It considered whether the agreement was entered into under duress, as claimed by Complete Steel Fixing Pty Ltd, and if the process for terminating the agreement was correctly followed. The Commission also assessed whether the agreement was in the best interests of the employees and whether there was a significant change in circumstances warranting its termination.

The Fair Work Commission found that the agreement was indeed entered into under duress and that the termination process was correctly followed. The Commission concluded that the agreement was not in the best interests of the employees, given the significant changes in the industry and the company's circumstances. Therefore, the application for termination was successful.

The Fair Work Commission terminated the Complete Steel Fixing Pty Ltd/CFMEU Collective Agreement 2016, effective from the date of the decision. The Commission also ordered that any outstanding matters related to the agreement be resolved in accordance with the Fair Work Act 2009.

Complete Steel Fixing Pty Ltd

DECISION

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Legal Principle Established