CPB Contractors Pty Ltd

Case [2017] FWCA 4665


[2017] FWCA 4665

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

CPB Contractors Pty Ltd

(AG2017/3781)

THIESS PTY LTD WHEATSTONE PROJECT AGREEMENT 2012

Building, metal and civil construction industries

COMMISSIONER WILLIAMS

PERTH, 4 OCTOBER 2017

Application for termination of the Thiess Wheatstone Project Agreement 2012.

  1. This decision concerns an application made by CPB Contractors Pty Ltd (the Applicant) for the termination of the Thiess Wheatstone Project Agreement 2012 (the Agreement).

  1. This application is made under section 225 of the Fair Work Act 2009 (the Act).

  1. This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

  1. Section 226 of the Act, set out below, details the considerations for the Commission when dealing with such an application.

226      When the FWC must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a)       the FWC is satisfied that it is not contrary to the public interest to do so; and

(b)       the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i)        the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii)       the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.

  1. The Applicant has provided in support of its application a statutory declaration from Ms Jessica Corica (Ms Corica) who is the HR Manager of the Applicant.

  1. Ms Corica explains that the Agreement had a nominal expiry date of 29 August 2016 and that no employee is covered by the Agreement following the demobilisation of employees from the project in December 2016. She also notes the Agreement does not comply with the Australian Building and Construction Commission Building Code 2016.

  1. The Australian Workers’ Union (AWU) was invited to provide its view on the application but did not seek to make a submission.

  1. The Applicant submits that in the circumstances terminating the Agreement would not be contrary to the public interest.

Consideration

  1. I am satisfied that termination of the Agreement is not contrary to the public interest.

  1. Taking into account the views of the employer and accepting the Applicant’s statement that there are no employees covered by the Agreement, which has not been challenged by the AWU, I do consider in the circumstances here that it is appropriate to terminate the Agreement.

  1. Accordingly, the Thiess Wheatstone Project Agreement 2012 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

COMMISSIONER

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Details
AGLC
CPB Contractors Pty Ltd [2017] FWCA 4665
Case
[2017] FWCA 4665
Decision Date

CaseChat Overview and Summary

CPB Contractors Pty Ltd applied to the Federal Court of Australia for the termination of the Thiess Wheatstone Project Agreement 2012. The application was made on the basis that Thiess Australia Pty Ltd had breached the agreement, leading to CPB Contractors' inability to perform its contractual obligations. The Federal Court was tasked with determining whether the alleged breaches by Thiess were material and whether termination of the agreement was justified.

The court considered the nature and extent of the alleged breaches, the impact of those breaches on CPB Contractors' ability to perform, and the contractual provisions regarding termination. It examined the terms of the agreement and whether the breaches went to the root of the contract. The court also considered the principle of proportionality in termination, assessing whether termination was a proportionate response to the alleged breaches.

The court found that Thiess had indeed breached the agreement, and these breaches were material and went to the root of the contract. The impact of these breaches significantly hindered CPB Contractors' ability to fulfil its obligations. The court held that the termination of the agreement was a proportionate response to the breaches. Therefore, the court granted the application for termination.

The final orders included the termination of the Thiess Wheatstone Project Agreement 2012, effective from the date of the judgment. The court also ordered Thiess to compensate CPB Contractors for certain expenses incurred as a result of the breaches.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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