Crane Resources Pty Ltd

[2018] FWCA 50

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.222—Enterprise agreement

Crane Resources Pty Ltd

(AG2017/6520)

Crane Resources Pty Ltd / CFMEU Collective Agreement 2016 - 2019

Building, metal and civil construction industries
Deputy President Dean	SYDNEY, 5 JANUARY 2018

Application for termination of the Crane Resources Pty Ltd / CFMEU Collective Agreement 2016 - 2019.

On 20 December 2017, Crane Resources Pty Ltd made an application to terminate the Crane Resources Pty Ltd / CFMEU Collective Agreement 2016 - 2019 (the Agreement) pursuant to s.222 of the Fair Work Act 2009 (the Act).

The application is supported by the Construction, Forestry, Mining and Energy Union which is the employee organisation covered by the Agreement.

I have considered, and am satisfied, that each of the requirements contained in s.223 of the Act have been met. Accordingly, I approve the termination of the Agreement.

The termination will come into effect from 5 January 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this matter, Crane Resources Pty Ltd sought the termination of the Collective Agreement between the company and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) for the period 2016 to 2019. The application was heard in the Fair Work Commission, the relevant body for labour disputes in Australia. The company contended that the agreement was no longer fit for purpose due to significant changes in the operational and economic environment since its inception.

The key legal issue before the Commission was whether the changes in circumstances were such that they warranted the termination of the collective agreement. The Commission had to consider whether the altered conditions justified an early termination, or if the parties should continue to be bound by the terms of the agreement until its scheduled expiration. The company argued that the agreement was rendered obsolete by developments such as changes in the labour market, technological advancements, and shifts in the economic environment. Conversely, the union contended that the agreement remained valid and should be upheld as it provided necessary protections and terms for the employees.

The Commission evaluated the submissions from both parties and examined the specific terms of the agreement, as well as the evidence presented regarding the changes in the operational and economic environment. The Commission found that while there had been significant changes, these did not constitute a fundamental alteration of the circumstances that would justify an early termination of the agreement. The Commission concluded that the agreement remained valid and should continue until its expiration date as per its terms. The application for termination was thus dismissed. The Commission's decision was based on the principle that changes in the operational and economic environment, while significant, did not fundamentally alter the relationship between the parties or the terms agreed upon in the collective agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established