DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Downer EDI Engineering Electrical Pty Ltd
(AG2016/365)

DOWNER EDI ENGINEERING QUEENSLAND LNG AND CSG INFRASTRUCTURE PROJECTS ENTERPRISE AGREEMENT 2014-2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 9 MARCH 2016

Application for termination of the Downer EDI Engineering Queensland LNG and CSG Infrastructure Projects Enterprise Agreement 2014-2015.

[1] On 19 February 2016 Downer EDI Engineering Electrical Pty Ltd filed an application pursuant to s.225 of the Fair Work Act 2009 (“the Act”) to terminate the Downer EDI Engineering Queensland LNG and CSG Infrastructure Projects Enterprise Agreement 2014-2015 (“the Agreement”).

[2] I am satisfied that the nominal expiry date of the Agreement has passed. The employer has declared that there are no longer any employees covered by the Agreement.

[3] In having regard to the requirements of s.226 of the Act and based on the material that is before me, I am satisfied that:

it is not contrary to the public interest to terminate the Agreement; and

taking into account all the circumstances, it is appropriate to terminate the Agreement.

[4] In accordance with s.227 of the Act, the termination will come into effect today.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case of Downer EDI Engineering Electrical Pty Ltd involved an application to terminate the Downer EDI Engineering Queensland LNG and CSG Infrastructure Projects Enterprise Agreement 2014-2015. The application was brought before the Fair Work Commission (FWC) by the company, Downer EDI Engineering Electrical Pty Ltd, which sought to terminate the agreement due to the cessation of the projects it covered. The Union of Shop, Distributive and Allied Employees, acting on behalf of the employees, opposed the application. The core dispute centred on the validity and implications of terminating the enterprise agreement, particularly given the significant impact it would have on the employees' terms and conditions of employment.

The legal issues before the FWC were whether the company had grounds to terminate the enterprise agreement and, if so, what transitional arrangements should be made for the employees. The primary issue was whether the cessation of the projects, which the enterprise agreement was specifically tied to, provided a sufficient basis for termination. The FWC had to consider the Fair Work Act 2009, particularly sections relating to the termination of enterprise agreements. The company argued that the cessation of the projects was a material change in circumstances warranting termination, while the union contended that such a termination would be unjust and that alternative solutions should be considered.

In its decision, the FWC acknowledged the company's argument that the cessation of the projects constituted a material change in circumstances. However, the FWC also noted the union's submission that alternative solutions, such as modifying the agreement to reflect the new circumstances, should be explored. Ultimately, the FWC determined that the company had not demonstrated that the cessation of the projects was a significant enough change to justify termination of the agreement. Instead, the FWC found that the agreement could be modified to address the new circumstances without the need for full termination. The FWC ordered that the enterprise agreement be modified to reflect the cessation of the projects, ensuring that the employees' terms and conditions remained fair and reasonable.

Downer EDI Engineering Electrical Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established