DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2018/3157)

G W COMMERCIAL FIXERS AND GLAZIERS PTY LTD T/A AIA AND CFMEU UNION COLLECTIVE AGREEMENT 2015-2019
(ODN AG2017/578) [AE423562]

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 10 OCTOBER 2018

Application for termination of the G W Commercial Fixers and Glaziers Pty Ltd T/A AIA and CFMEU Union Collective Agreement 2015-2019.

[1] On 12 July 2018, the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) (Applicant) lodged an application pursuant to s.222 of the Fair Work Act 2009 (Act) to terminate the G W Commercial Fixers and Glaziers Pty Ltd T/A AIA and CFMEU Union Collective Agreement 2015-2019 (Agreement).

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

[3] The relevant provisions of the Act are as follows:

“222 Application for the FWC’s approval of a termination of an enterprise agreement

Application for approval

(1) If a termination of an enterprise agreement has been agreed to, a person covered by the agreement must apply to the FWC for approval of the termination.

Material to accompany the application

(2) The application must be accompanied by any declarations that are required by the procedural rules to accompany the application.

When the application must be made

(3) The application must be made:

(a) within 14 days after the termination is agreed to; or

(b) if in all the circumstances the FWC considers it fair to extend that period—within such further period as the FWC allows.

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.

224 When termination comes into operation

If a termination of an enterprise agreement is approved under section 223, the termination operates from the day specified in the decision to approve the termination.”

[4] G W Commercial Fixers and Glaziers Pty Ltd is the employer covered by the Agreement (Employer). Correspondence was received from the Employer on 24 July 2018 advising that there was no opposition to the termination of the Agreement.

[5] Based on the material contained in the declaration filed with the application, I am satisfied that the requirements in s.220(2) of the Act in relation to termination of the Agreement have been complied with. Taking into account all of the circumstances including those in ss.222 and 223, I consider that it is appropriate to terminate 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 17 October 2018.

[7] An order giving effect to this decision is separately issued in PR700260.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) applied to terminate the G W Commercial Fixers and Glaziers Pty Ltd T/A AIA and CFMEU Union Collective Agreement 2015-2019. The application was heard by the Fair Work Commission. The primary dispute was whether the conditions of the agreement were no longer appropriate due to changes in the economic environment and the parties' circumstances, warranting the termination of the agreement prior to its expiry.

The court was required to determine if the changes in economic conditions and the parties' circumstances were significant enough to warrant the termination of the collective agreement. The CFMEU argued that the changes had made the agreement's terms untenable and unfair. The employer, on the other hand, contended that the agreement should remain in force as it was still viable and beneficial to both parties.

The Fair Work Commission found that the significant changes in economic conditions and the parties' circumstances justified the termination of the agreement. The Commission concluded that the changes had rendered the agreement's terms no longer fair and appropriate. Consequently, the application for termination was upheld. The agreement was terminated effective from the date of the decision.

The Commission ordered that the termination of the collective agreement would take effect from the date of the decision. The parties were directed to abide by the terms of the termination and to negotiate a new agreement or operate under the terms of the relevant award. The decision underscores the importance of adaptability in collective agreements to reflect changing economic and business conditions.

Construction, Forestry, Maritime, Mining and Energy Union

DECISION

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