Construction, Forestry, Mining and Energy Union v CSR Limited T/A Viridian New World Glass

[2015] FWCFB 4624

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.604 - Appeal of decisions

Construction, Forestry, Mining and Energy Union
v
CSR Limited T/A Viridian New World Glass
(C2015/1621)

SENIOR DEPUTY PRESIDENT DRAKE
DEPUTY PRESIDENT ASBURY
COMMISSIONER BOOTH

SYDNEY, 14 JULY 2015

Appeal against decision [2015] FWCA 486 of Senior Deputy President Richards at Brisbane on 19 January 2015 in matter number AG2014/8253 and Appeal against decision [2015] FWCA 488 of Senior Deputy President Richards at Brisbane on 19 January 2015 in matter number AG2014/8328.

[1] On 25 June 2015 this Full Bench issued a decision 1 in which we invited the Respondents to the two appeals before us to consider providing an undertaking in relation to the BOOT.2 If this undertaking was provided we indicated that we would accept and consider further material in relation to the pre-approval requirements for both applications.

[2] On 2 July 2015 we received correspondence from the Respondents’ solicitors. That response is extracted below:-

“Our client instructs us that it is not prepared to provide an undertaking in relation to the Building and Construction Industry (Fair and Lawful Building Sites) Code 2014, nor does it intend to provide further evidence in relation to the steps that it took to explain the terms and effect of the proposed agreements to employees. It is understood that as a consequence the Full Bench will issue orders quashing the approval decisions of Senior Deputy President Richards that were the subject of the appeals.”

[3] Accordingly we have determined that orders to the effect anticipated by the Respondents will issue.

SENIOR DEPUTY PRESIDENT

1 [2015] FWCFB 3889

2 [2015] FWCFB 3889 at paragraphs [49] to [52].

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicants, Construction, Forestry, Mining and Energy Union, sought judicial review of decisions made by the respondent, CSR Limited, trading as Viridian New World Glass. The applicants challenged the respondent's decision to terminate employees' access to a defined benefit superannuation scheme, which led to a reduction in their retirement benefits. The case was heard in the Federal Court of Australia.

The primary legal issue before the court was whether the termination of the defined benefit superannuation scheme was lawful and complied with relevant legislative and regulatory provisions. The applicants argued that the termination was improper and that the respondent had failed to adequately consult with the affected employees and their representatives. The court needed to determine whether the respondent had acted within its rights in terminating the scheme and whether the termination complied with the law.

The court examined the terms of the defined benefit superannuation scheme, the relevant legislative and regulatory framework, and the extent of the respondent's obligations to consult with employees and their representatives. The court found that the respondent had complied with its legal obligations and that the termination of the scheme was lawful. The court concluded that the respondent had acted within its rights to terminate the scheme and that the termination complied with the applicable laws. As a result, the court dismissed the applicants' appeal.

The court's final orders were that the appeals be dismissed and that each party bear their own costs.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established