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 T/A Downer Engineering & Downer EDI Engineering Power Pty Ltd T/A Downer Engineering
(AG2016/1083)

DOWNER AUSTRALIA DAUNIA PROJECT UNION GREENFIELDS AGREEMENT

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 17 MAY 2016

Application for termination of the Downer Australia Daunia Project Union Greenfields Agreement.

[1] On 4 May 2016 Downer EDI Engineering Electrical Pty Ltd T/A Downer Engineering & Downer EDI Engineering Power Pty Ltd T/A Downer Engineering filed an application pursuant to s.225 of the Fair Work Act 2009 (“the Act”) to terminate the Downer Australia Daunia Project Union Greenfields Agreement (“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 involved an application by Downer EDI Engineering Electrical Pty Ltd and Downer EDI Engineering Power Pty Ltd, trading as Downer Engineering, to terminate the Downer Australia Daunia Project Union Greenfields Agreement. The application was brought before the Fair Work Commission, which was asked to determine whether the agreement should be terminated under the Fair Work Act 2009. The primary dispute centred around the enforceability and continued relevance of the agreement in light of changes in the operational and legal environment.

The key legal issues before the Commission were whether the Downer Australia Daunia Project Union Greenfields Agreement had become ineffective due to the completion of the project, and if so, whether the agreement should be terminated. The Commission had to assess the terms of the agreement, the nature of the project, and the implications of the project's completion on the ongoing enforceability of the agreement. Additionally, the Commission needed to consider the impact of the termination on the employees and unions involved.

In its decision, the Fair Work Commission concluded that the Downer Australia Daunia Project Union Greenfields Agreement had indeed become ineffective due to the completion of the project. The Commission found that the agreement was specifically tailored to the project's requirements and, with the project's conclusion, the agreement's purpose and relevance had ceased. Consequently, the Commission determined that the agreement should be terminated, as it was no longer fit for purpose or necessary. The termination was deemed to be in the best interests of all parties involved, considering the project's completion and the need for updated agreements reflective of current industry practices.

The Fair Work Commission ordered the termination of the Downer Australia Daunia Project Union Greenfields Agreement, effective from the date of the decision. This termination resolved the dispute and provided clarity for all parties, allowing for the establishment of new agreements that would better suit the current operational environment. The decision underscored the importance of agreements being adaptable and relevant to the specific circumstances of the projects they govern.

Downer EDI Engineering Electrical Pty Ltd T/A Downer Engineering & Downer EDI Engineering Power Pty Ltd T/A Downer Engineering

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established