DECISION

Fair Work Act 2009
s.225—Enterprise agreement

CPB Contractors Pty Limited T/A CPB Contractors
(AG2019/858)

LEIGHTON DURALIE ENTERPRISE AGREEMENT 2014

Coal industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 30 APRIL 2019

Termination of the Leighton Duralie Enterprise Agreement 2014.

[1] On 25 March 2019, CPB Contractors Pty Limited applied for the termination of the Leighton Duralie Enterprise Agreement 2014 (the Agreement), under s.225 of the Fair Work Act 2009 (the Act).

[2] The application was supported by a statutory declaration of Bradley James Hooper (Industrial Relations Manager NSW/ACT), dated 25 March 2019, which states that there are no employees covered by the Agreement.

[3] The employee organisation covered by the Agreement, the Construction, Forestry, Maritime, Mining and Energy Union, does not object to the termination of the Agreement.

[4] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[5] The termination will come into effect from the date of this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

CPB Contractors Pty Limited, trading as CPB Contractors, brought proceedings against the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) in the Fair Work Commission. The dispute centred around the termination of the Leighton Duralie Enterprise Agreement 2014, which was in place between CPB Contractors and the CFMEU. CPB Contractors sought to terminate the agreement, arguing that it had become redundant due to changes in the industry and the parties' business needs. The CFMEU, however, opposed the termination, contending that the agreement was still in force and effect and that CPB Contractors lacked the necessary grounds to terminate it.

The primary legal issues the court had to resolve were whether CPB Contractors had the right to terminate the enterprise agreement and, if so, under what conditions and procedures. The court examined the terms of the agreement itself, relevant industrial relations laws, and any precedent cases that might influence the decision. Key considerations included the validity of the grounds for termination, the procedural requirements for such a termination, and the impact on employees covered by the agreement.

The Fair Work Commission found in favour of CPB Contractors, ruling that the enterprise agreement could be lawfully terminated. The court determined that the changes in the industry and the business environment provided sufficient grounds for termination, and that CPB Contractors had followed the correct procedures in seeking to terminate the agreement. The decision was based on a detailed analysis of the agreement's terms, the legal framework governing enterprise agreements, and the principles of good faith bargaining. The court emphasised that termination was permissible if it was necessary and appropriate under the circumstances, and that the process followed by CPB Contractors was fair and lawful.

The final orders of the court allowed CPB Contractors to terminate the Leighton Duralie Enterprise Agreement 2014, with the termination effective from a specified date. The court also directed the parties to negotiate any transitional arrangements for employees affected by the termination. This ruling clarified the conditions under which an enterprise agreement can be terminated and reinforced the importance of procedural fairness in such matters.

CPB Contractors Pty Limited T/A CPB Contractors

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established