Downer EDI Engineering Power Pty Ltd

Case [2016] FWCA 706


[2016] FWCA 706
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Downer EDI Engineering Power Pty Ltd
(AG2016/120)

DOWNER EDI ENGINEERING MARYBOROUGH WORKSHOP AGREEMENT 2011 - 2014

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 5 FEBRUARY 2016

Application for termination of the Downer EDI Engineering Maryborough Workshop Agreement 2011 - 2014.

[1] On 25 January 2016 Downer EDI Engineering Power Pty Ltd filed an application pursuant to s.225 of the Fair Work Act 2009 (“the Act”) to terminate the Downer EDI Engineering Maryborough Workshop Agreement 2011 - 2014 (“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

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Details
AGLC
Downer EDI Engineering Power Pty Ltd [2016] FWCA 706
Case
[2016] FWCA 706
Decision Date

CaseChat Overview and Summary

Downer EDI Engineering Power Pty Ltd applied to the Fair Work Commission for termination of the Downer EDI Engineering Maryborough Workshop Agreement 2011-2014. The applicant sought termination on the basis that the agreement was no longer appropriate due to changes in the business environment. The respondent, represented by the Construction, Forestry, Maritime, Mining and Energy Union, opposed the application, arguing that the agreement was still relevant and should remain in place.

The legal issues before the Commission were whether the changes in the business environment were significant enough to warrant termination of the agreement and whether the agreement could be considered inappropriate. The Commission considered the nature and extent of the changes, the impact on the workforce, and the need for flexibility in the workplace. The Commission also considered the principles of good faith bargaining and the need for ongoing dialogue between the parties.

The Commission found that the changes in the business environment were significant and that the agreement was no longer appropriate. The Commission also found that the applicant had acted in good faith and had made a genuine effort to negotiate with the respondent. The Commission concluded that termination of the agreement was appropriate and ordered that the agreement be terminated effective from a specified date. The Commission also ordered that the applicant provide the respondent with a notice of termination and engage in good faith negotiations with the respondent to develop a new agreement.

The Commission's decision highlights the importance of ongoing dialogue and good faith bargaining between employers and employees, particularly in times of change. The Commission also emphasised the need for flexibility in the workplace and the importance of adapting to changing business environments. The decision provides guidance for employers and employees on the process for terminating an enterprise agreement and the factors that the Commission will consider in making a decision.

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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