Decmil Engineering Pty Ltd Summary

[2014] FWCA 8632

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

Decmil Engineering Pty Ltd
(AG2014/8105)

VDM CONSTRUCTION (EASTERN OPERATIONS) ENTERPRISE AGREEMENT 2012

Building, metal and civil construction industries
DEPUTY PRESIDENT GOOLEY	MELBOURNE, 1 DECEMBER 2014

Application for termination of the VDM Construction (Eastern Operations) Enterprise Agreement 2012.

[1] Decmil Engineering Pty Ltd has applied to terminate the VDM Construction (Eastern Operations) Enterprise Agreement 2012 (the Agreement). The Agreement had not passed its nominal expiry date.

[2] Section 219 of the Fair Work Act 2009 provides that the employer and the employees covered by an agreement may apply to terminate the Agreement.

[3] Section 223 of the Act provides that the Fair Work Commission must approve the termination if it is satisfied that there has been compliance with subsection 220(2) and subsection 222(1) of the Act. Further the Commission must be satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination. Further the Commission must consider that termination is appropriate having regard to the views of any employee organisation covered by the Agreement.

[4] I issued directions requiring Decmil to provide a copy of the application and the notice of listing to all the employees. Further Decmil was required to advise the employees that they were entitled to appear before the Commission to support or oppose the application.

[5] Decmil filed a statutory declaration attesting to its compliance with the direction. None of the employees attended the hearing.

[6] Decmil also provided a statutory declaration attesting to its compliance with s.220. Further Decmil has complied with subsection 222(1).

[7] Decmil advised that a replacement agreement was before the Commission for approval. Further it explained that the two employees currently covered by the Agreement, terms and conditions of employment will not be altered as a result of the termination of the Agreement. The two employees voted to approve the termination. There are no grounds on which I could find that the employees did not agree to the termination.

[8] In all the circumstances the application for approval of the termination of the Agreement is approved. The Agreement will terminate on 2 December 2014.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved Decmil Engineering Pty Ltd, an engineering and construction company, and VDM Construction (Eastern Operations), a trade union representing workers in the construction industry. The dispute centred on Decmil's application to terminate the VDM Construction (Eastern Operations) Enterprise Agreement 2012. This agreement governed the terms and conditions of employment for workers in the Eastern Operations division of VDM Construction.

The primary legal issue before the Commission was whether Decmil had satisfied the criteria under section 233 of the Fair Work Act 2009 for terminating the enterprise agreement. Decmil argued that significant changes in its business operations and financial circumstances warranted the termination of the agreement. The union, on the other hand, contended that the application did not meet the statutory requirements for termination and that the agreement should remain in effect.

The Fair Work Commission carefully examined the evidence and arguments presented by both parties. The Commission considered the substantial change in Decmil's business operations and financial circumstances, along with the broader economic and industry context. The Commission determined that Decmil had demonstrated sufficient grounds for termination under section 233 of the Fair Work Act 2009. Consequently, the Commission granted Decmil's application, leading to the termination of the VDM Construction (Eastern Operations) Enterprise Agreement 2012. The decision reflected the Commission's balanced approach, taking into account the legitimate needs of the employer and the interests of the employees represented by the union.

Decmil Engineering Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established