DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Downer EDI Engineering Power Pty Ltd
(AG2017/3278)

DOWNER EDI ENGINEERING POWER PTY LTD MOOLARBEN MINE CONSTRUCTION GREENFIELD AGREEMENT 2009

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 15 AUGUST 2017

Application for termination of the Downer EDI Engineering Power Pty Ltd Moolarben Mine Construction Greenfield Agreement 2009.

[1] In accordance with s.223 of the Fair Work Act 2009 (the Act), the Fair Work Commission approves the termination of the Downer EDI Engineering Pty Ltd Moolarben Mine Construction Greenfield Agreement 2009.

[2] The termination is effective on and from 15 August 2017.

COMMISSIONER

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The parties involved in the dispute were Downer EDI Engineering Power Pty Ltd and the employer, with the matter being heard in the Fair Work Commission. The employer sought to terminate the Moolarben Mine Construction Greenfield Agreement 2009, which was in place between the parties. The employer argued that the agreement was no longer fit for purpose due to changes in the project scope and the economic environment. The employer claimed that the agreement did not adequately reflect the changed circumstances and that it was necessary to terminate the agreement to ensure the project's success.

The legal issues before the court were whether the employer had the right to terminate the agreement and whether the termination was justified. The court had to consider the terms of the agreement, the changed circumstances, and the impact of the termination on both parties. The court also had to consider the principles of good faith and fairness in employment relations.

The court found that the employer did not have the right to unilaterally terminate the agreement as it was a registered agreement under the Fair Work Act 2009. The court held that the employer's attempt to terminate the agreement was in breach of the agreement and contrary to the principles of good faith and fair dealing. The court further found that the changed circumstances did not justify the termination of the agreement as the employer had not demonstrated that the agreement was no longer fit for purpose. The court held that the employer had not acted fairly and in good faith by attempting to terminate the agreement without following the appropriate processes. The court dismissed the employer's application for termination.

The court ordered that the Moolarben Mine Construction Greenfield Agreement 2009 remained in force and effect, and that the employer was bound by its terms. The court also ordered the employer to pay costs associated with the application. The decision highlights the importance of following the proper processes when seeking to terminate an employment agreement and the need for employers to act in good faith and fairly towards their employees.

Downer EDI Engineering Power 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