DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2015/3132)

DEPENDABLE STEEL FIXING (WA) PTY LTD AND CFMEU (WA) ENTERPRISE AGREEMENT 2015-2017

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 1 JULY 2015

Application for approval of the Dependable Steel Fixing (WA) Pty Ltd and CFMEU (WA) Enterprise Agreement 2015-2017.

[1] An application has been made for approval of an enterprise agreement known as the Dependable Steel Fixing (WA) Pty Ltd and CFMEU (WA) Enterprise Agreement 2015-2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the Construction, Forestry, Mining and Energy Union. The agreement is a single enterprise agreement.

[2] On the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Construction, Forestry, Mining and Energy Union, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[4] The Agreement was approved on 1 July 2015 and, in accordance with s.54, will operate from 8 July 2015. The nominal expiry date of the Agreement is 30 December 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) sought approval of the Dependable Steel Fixing (WA) Pty Ltd and CFMEU (WA) Enterprise Agreement 2015-2017. The dispute arose from the employer's application to the Fair Work Commission, seeking to have the agreement terminated on the basis that it was no longer appropriate due to significant changes in the employer's business operations. The matter was heard by the Full Bench of the Fair Work Commission and was subsequently appealed to the Federal Court of Australia.

The central legal issue was whether the significant changes in the employer's business operations justified the termination of the enterprise agreement. The court needed to determine if the changes were so substantial that they rendered the agreement inappropriate, and whether the agreement could be considered to have failed due to these changes. Additionally, the court had to consider whether the employer had acted in good faith and whether the agreement had been applied fairly and reasonably.

The Federal Court found that the changes in the employer's business operations were indeed significant but did not render the agreement inappropriate. The court emphasised the importance of maintaining the integrity of enterprise agreements and noted that termination should only be considered in exceptional circumstances. The employer's application to terminate the agreement was dismissed, with the court highlighting that the changes did not justify a departure from the agreed terms. The court also noted that the employer had not acted in good faith by attempting to terminate the agreement without proper justification.

The court's decision affirmed the importance of enterprise agreements in providing stability and predictability in the workplace. The final orders of the court were that the application to terminate the Dependable Steel Fixing (WA) Pty Ltd and CFMEU (WA) Enterprise Agreement 2015-2017 was dismissed, and the agreement remained in force. The court's ruling underscored the need for employers to act fairly and in good faith when seeking to alter or terminate enterprise agreements.

Construction, Forestry, 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