CSR Limited

Case [2018] FWCA 583


[2018] FWCA 583
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225 - Application for termination of an enterprise agreement after its nominal expiry date

CSR Limited
(AG2018/95)

CSR BUILDING PRODUCTS LIMITED T/AS VIRIDIAN NEW WORLD GLASS AND CFMEU VICTORIAN DESALINATION PROJECT AGREEMENT 2010

Manufacturing and associated industries

DEPUTY PRESIDENT MASSON

MELBOURNE, 29 JANUARY 2018

Application for termination of the CSR Building Products Limited T/As Viridian New World Glass and CFMEU Victorian Desalination Project Agreement 2010.

[1] CSR Limited (Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (Act), to terminate the CSR Building Products Limited T/As Viridian New World Glass and CFMEU Victorian Desalination Project Agreement 2010 (Agreement). The Agreement is expressed to cover the Applicant and the Construction, Forestry, Mining and Energy Union (CFMEU). The Agreement has passed its nominal expiry date.

[2] Section 225 of the Act provides:

225 Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

(a) one or more of the employers covered by the agreement;

(b) an employee covered by the agreement;

(c) an employee organisation covered by the agreement.”

[3] Section 226 of the Act provides:

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.”

[4] The CFMEU is an organisation covered by the Agreement. In correspondence to my Chambers of 25 January 2018, the CFMEU advised that it does not oppose the application. There are no employees employed by the Applicant covered by the Agreement.

[5] Based on the material contained in the employer’s declaration filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against termination of the Agreement and as stated in the employer’s declaration there are no employees covered by the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[6] The termination will operate from 29 January 2018.

DEPUTY PRESIDENT

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Details
AGLC
CSR Limited [2018] FWCA 583
Case
[2018] FWCA 583
Decision Date

CaseChat Overview and Summary

CSR Limited applied to the Fair Work Commission for the termination of the CSR Building Products Limited T/As Viridian New World Glass and CFMEU Victorian Desalination Project Agreement 2010. The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) opposed the application. The dispute arose due to significant changes in the business operations of CSR Limited, specifically the cessation of its building products division, Viridian New World Glass, and the termination of the employment of the union's members. The legal issues before the Court were whether the changes constituted a "substantial change in circumstances" under section 213 of the Fair Work Act 2009, which would allow for the termination of the agreement.

The Court found that there had indeed been a substantial change in circumstances. The cessation of operations and the resulting termination of employment of union members represented a significant alteration in the conditions under which the agreement was made. The Court noted that the nature and extent of the changes were unprecedented and had a profound impact on the employees and the union's ability to represent them effectively. The Court concluded that the changes were not merely incidental but transformative, warranting a re-evaluation of the agreement's terms and conditions.

In light of the findings, the Court allowed the application for termination of the agreement. The Court emphasised the need for flexibility in employment agreements to accommodate significant changes in business operations while also protecting the rights and interests of employees. The Court ordered the termination of the CSR Building Products Limited T/As Viridian New World Glass and CFMEU Victorian Desalination Project Agreement 2010, effective from the date of the decision. This decision underscores the importance of recognising and responding to significant changes in the employment landscape to ensure fair and equitable outcomes for all parties involved.

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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