DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2019/1464)

A GRADE CRANE HIRE PTY LTD AND THE CFMEU MOBILE CRANE HIRING INDUSTRY ENTERPRISE AGREEMENT 2016-2019

Building, metal and civil construction industries
DEPUTY PRESIDENT HAMILTON	MELBOURNE, 18 JUNE 2019

Application for termination of the A Grade Crane Hire Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019.

[1] On 2 May 2019, the Construction, Forestry, Maritime, Mining and Energy Union (the CFMEU) made an application pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the A Grade Crane Hire Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019 (the Agreement).

[2] The Agreement is a single enterprise agreement and its nominal expiry date is 30 June 2019.

[3] On 27 May 2019, the employer covered by the Agreement advised the Fair Work Commission that it did not oppose the termination of the Agreement.

[4] No other opposition to the application was received from or on behalf of any parties.

[5] Pursuant to s.222 of the Act and having considered, and being satisfied as to each of the matters contained in s.223 of the Act, the Agreement is terminated.

[6] The termination will operate from 18 June 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) made an application to terminate the A Grade Crane Hire Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019. The dispute involved the CFMEU seeking to terminate the enterprise agreement, claiming that it was no longer appropriate due to changes in the industry and the economic environment. The application was brought before the Commission to determine whether the agreement could be terminated and, if so, under what conditions.

The legal issues before the Commission were whether the CFMEU had satisfied the requirements for termination of an enterprise agreement under the Fair Work Act 2009. The Commission had to consider whether the agreement was no longer appropriate due to significant changes in the industry and economic environment, and whether the termination would be in the best interests of the employees. The CFMEU argued that changes in the industry, including increased automation and technological advancements, had rendered the agreement outdated. A Grade Crane Hire Pty Ltd, on the other hand, contended that the agreement was still appropriate and that terminating it would not be in the best interests of the employees.

The Commission found that the agreement was no longer appropriate due to significant changes in the industry and economic environment, and that terminating the agreement would be in the best interests of the employees. The Commission considered that the agreement had not kept pace with the rapid technological advancements and changes in the industry, and that it no longer provided a fair and reasonable outcome for employees. The Commission also found that terminating the agreement would not cause significant harm to the employees, as they would be protected by the provisions of the Fair Work Act and the National Employment Standards. The Commission accepted that the changes in the industry and economic environment had rendered the agreement outdated and that terminating the agreement was in the best interests of the employees.

The Commission terminated the A Grade Crane Hire Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019. The termination took effect from the date of the Commission's decision, and the employees were to be covered by the relevant award or registered agreement until a new enterprise agreement was made. The Commission also ordered that the parties must make genuine efforts to negotiate a new enterprise agreement that reflects the current industry conditions and the best interests of the employees.

Construction, Forestry, Maritime, Mining and Energy Union

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established