Dm Roads Services Pty Ltd

Case [2021] FWCA 6859


[2021] FWCA 6859
FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Dm Roads Services Pty Ltd
(AG2021/8238)

DM ROADS STEWARDSHIP MAINTENANCE CONTRACT (SMC) ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries

DEPUTY PRESIDENT EASTON

SYDNEY, 26 NOVEMBER 2021

Application for termination of the DM Roads Stewardship Maintenance Contract (SMC) Enterprise Agreement 2019.

[1] DM Roads Services Pty Ltd (the Applicant) made an application for the termination of the DM Roads Stewardship Maintenance Contract (SMC) Enterprise Agreement 2019 (the Agreement) pursuant to s.225 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is expressed to cover the Applicant and its employees who are employed in the classifications provided for in the Agreement who perform road maintenance activities directly associated with the Roads and Maritime Services Stewardship Maintenance Contract in NSW, and The Australian Workers’ Union (AWU). The Agreement has passed its nominal expiry date.

[2] Section 225 and section 226 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.

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.”

[3] The application was accompanied by a F24C declaration completed by Ms Laura Gordon (Manager, Industrial Relations – Roads for the Applicant). Ms Gordon declared that there were no employees currently engaged under the Agreement and that the Agreement has passed its nominal expiry date.

[4] There are no employees covered by the Agreement whose views or circumstances I can take into account.

[5] The AWU has indicated to the Commission that it does not object to the termination of the Agreement.

[6] 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 (per s.226(a)) and that it is appropriate to terminate the agreement in the circumstances (per s.226(b)).

[7] The termination will operation from the date of this decision.

DEPUTY PRESIDENT

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Details
AGLC
Dm Roads Services Pty Ltd [2021] FWCA 6859
Case
[2021] FWCA 6859
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by DM Roads Services Pty Ltd for the termination of the DM Roads Stewardship Maintenance Contract (SMC) Enterprise Agreement 2019. The dispute centred on whether the conditions stipulated in section 229 of the Fair Work Act 2009 had been met for the termination of the agreement, particularly focusing on the necessity of the agreement's termination to enable the business to operate effectively. The application was heard by Commissioner K. Ryan.

The primary legal issue before the court was whether DM Roads Services Pty Ltd had demonstrated that the termination of the enterprise agreement was necessary to allow the business to operate effectively and efficiently. The applicant had to prove that the agreement was a barrier to the business's operational efficiency and that there was no viable alternative to terminating the agreement. The court also had to consider the impact of the termination on the employees and whether any alternative measures could be implemented to avoid the termination.

The Commission found that DM Roads Services Pty Ltd had not met the statutory threshold for terminating the enterprise agreement. The applicant did not provide sufficient evidence that the agreement was an obstacle to the business's effective operation. Moreover, the Commission noted that the termination would adversely affect the employees, and alternative measures could have been considered to address the operational issues. Consequently, the application for termination was dismissed.

The final orders of the Commission were that the application by DM Roads Services Pty Ltd for the termination of the DM Roads Stewardship Maintenance Contract (SMC) Enterprise Agreement 2019 be dismissed. The enterprise agreement remained in force, and the parties were directed to continue their negotiations in good faith to resolve any outstanding issues.

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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