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 Infrastructure
(AG2016/61)

DOWNER EDI ENGINEERING QUEENSLAND LNG AND CSG INFRASTRUCTURE PROJECTS ENTERPRISE AGREEMENT 2010 - 2013

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 29 JANUARY 2016

Application for termination of the Downer EDI Engineering Queensland LNG and CSG Infrastructure Projects Enterprise Agreement 2010 - 2013.

[1] On 15 January 2016 Downer EDI Engineering Electrical Pty Ltd T/A Downer Infrastructure 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 2010 - 2013 (“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

In the Fair Work Commission, Downer EDI Engineering Electrical Pty Ltd T/A Downer Infrastructure applied for the termination of the Downer EDI Engineering Queensland LNG and CSG Infrastructure Projects Enterprise Agreement 2010 - 2013. The dispute arose from the employer’s assertion that the agreement was no longer suitable for the current operational and economic climate, which had significantly altered since the agreement was made. The Commission was tasked with determining whether the application met the criteria for termination as outlined in section 243A of the Fair Work Act 2009.

The central legal issue was whether the changes in the operational and economic environment were so substantial that they rendered the existing enterprise agreement obsolete. The Commission had to evaluate whether the employer had demonstrated a genuine change in circumstances, which would justify the termination of the agreement. Additionally, the Commission examined whether the termination would result in the employees being worse off than under the existing agreement.

In its decision, the Commission noted that while the employer had demonstrated some changes in the operational and economic environment, these changes did not reach the threshold required for terminating the agreement. The Commission concluded that the employer had not provided sufficient evidence to demonstrate that the changes were so significant that they rendered the agreement unworkable. The application was therefore dismissed, and the enterprise agreement remained in effect. The Commission emphasised the importance of maintaining the terms and conditions of employment as outlined in the agreement to ensure fairness and stability for the employees.

Downer EDI Engineering Electrical Pty Ltd T/A Downer Infrastructure

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established