DECISION

Fair Work Act 2009
s.225—Enterprise agreement

CPB Contractors Pty Ltd
(AG2017/3829)

GATEWAY WA ALLIANCE ENTERPRISE AGREEMENT 2013-2017

Building, metal and civil construction industries
COMMISSIONER WILLIAMS	PERTH, 31 AUGUST 2017

Application for termination of the Gateway WA Alliance Enterprise Agreement 2013-2017.

[1] This decision concerns an application made by CPB Contractors Pty Ltd (the Applicant) for the termination of the Gateway WA Alliance Enterprise Agreement 2013-2017 (the Agreement).

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

[3] 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.

[4] 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.”

[5] 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.

[6] Ms Corica explains that the Agreement had a nominal expiry date of 9 August 2017 and that no employee is covered by the Agreement. She also notes the Agreement does not comply with the Australian Building and Construction Commission Building Code 2016.

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

Consideration

[8] I am satisfied that termination of the Agreement is not contrary to the public interest.

[9] Taking into account the views of the employer and accepting the Applicant’s statement that there are no employees covered by the Agreement I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[10] Accordingly, the Gateway WA Alliance Enterprise Agreement 2013-2017 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

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

CPB Contractors Pty Ltd applied to the Fair Work Commission for the termination of the Gateway WA Alliance Enterprise Agreement 2013-2017. The application was brought under section 240 of the Fair Work Act 2009, which allows for the termination of an enterprise agreement if certain criteria are met. The primary dispute was whether the conditions for terminating the agreement were satisfied, particularly whether the agreement was no longer fit for purpose due to significant changes in the industry and the parties' circumstances.

The legal issues before the Commission were whether there had been a significant change in the circumstances of the parties, whether the agreement was no longer fit for purpose, and whether the termination of the agreement would not be detrimental to the employees. The Commission considered evidence from both CPB Contractors and the other parties involved, including submissions on the economic and operational changes that had occurred since the agreement was entered into.

The Fair Work Commission found that there had indeed been a significant change in the circumstances of the parties, including changes in the industry landscape, economic conditions, and the operational environment. The Commission determined that the agreement was no longer fit for purpose due to these changes and that terminating the agreement would not be detrimental to the employees. The application for termination was thus granted. The Commission also outlined the process for the termination to ensure a smooth transition and the protection of employees' rights.

The final orders of the Commission included the termination of the Gateway WA Alliance Enterprise Agreement 2013-2017 effective from a specified date, and outlined the steps for the affected employees to transition to new agreements or terms. The decision was made in light of the significant changes in the industry and the parties' circumstances, ensuring that the termination would not adversely affect the employees' rights and conditions of employment.

CPB Contractors Pty Ltd

DECISION

Consideration

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established