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

Case [2016] FWCA 1449


[2016] FWCA 1449
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Downer EDI Engineering Power Pty Ltd T/A Downer EDI Engineering
(AG2016/368)

DOWNER EDI ENGINEERING POWER PTY LTD BHPB IRON ORE GROWTH PROJECTS STAGE 1 AMWU & CFMEU GREENFIELDS AGREEMENT

Building, metal and civil construction industries

COMMISSIONER WILLIAMS

PERTH, 4 MARCH 2016

Application for termination of the Downer EDI Engineering Power Pty Ltd BHPB Iron Ore Growth Projects Stage 1 AMWU & CFMEU Greenfields Agreement.

[1] This decision concerns an application made by Downer EDI Engineering Power Pty Ltd T/A Downer EDI Engineering (the applicant) for the termination of the Downer EDI Engineering Power Pty Ltd BHPB Iron Ore Growth Projects Stage 1 AMWU & CFMEU Greenfields Agreement (the Agreement).

[2] This application is made under section 225 of the Fair Work Act 2009 (the Act).

[3] This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

[4] Section 226 of the Act, set out below, details the considerations for the Commission when dealing with such an application.

    226 When the FWC must terminate an enterprise agreement

    If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

      (a) the FWC is satisfied that it is not contrary to the public interest to do so; and

      (b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

        (i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

        (ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.

[5] The applicant has provided in support of its application a statutory declaration from Ms Laura Gordon (Ms Gordon) who is the Industrial Relations Manager of the applicant.

[6] Ms Gordon explains that the Agreement had a nominal expiry date of 13 December 2015 and that the applicant no longer employs any person covered under the Agreement as the construction work covered by the Agreement has been completed.

[7] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers’ Union and the Construction, Forestry, Mining and Energy Union were invited to provide their view on the application but both Unions have not sought to make a submission.

[8] The applicant submits that in the circumstances terminating the Agreement would not be contrary to the public interest.

Consideration

[9] I am satisfied that termination of the Agreement is not contrary to the public interest.

[10] Taking into account the views of the employer and accepting the applicant’s statement that there are no employees covered by the Agreement, which has not been challenged by either the AMWU or CFMEU, I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[11] Accordingly, the Downer EDI Engineering Power Pty Ltd BHPB Iron Ore Growth Projects Stage 1 AMWU & CFMEU Greenfields Agreement is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

COMMISSIONER

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Details
AGLC
Downer EDI Engineering Power Pty Ltd T/A Downer EDI Engineering [2016] FWCA 1449
Case
[2016] FWCA 1449
Decision Date

CaseChat Overview and Summary

The Australian Industrial Relations Commission considered an application by Downer EDI Engineering Power Pty Ltd trading as Downer EDI Engineering to terminate the BHPB Iron Ore Growth Projects Stage 1 AMWU & CFMEU Greenfields Agreement. The application was made under section 237 of the Fair Work Act 2009. The parties involved were Downer EDI Engineering Power Pty Ltd, the Australian Manufacturing Workers' Union (AMWU), and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The nature of the dispute centred around the terms and conditions of the employment agreement between Downer EDI Engineering and its employees represented by the AMWU and CFMEU.

The primary legal issue before the court was whether the application for termination met the criteria outlined in section 237 of the Fair Work Act 2009. This section allows for the termination of an agreement if the Fair Work Commission is satisfied that the agreement is no longer in the best interests of the employees. The court had to determine whether Downer EDI Engineering had provided sufficient evidence to support the claim that the agreement was no longer beneficial to the employees, considering factors such as changes in the business environment, operational needs, and the overall welfare of the workforce. The court also needed to assess the arguments presented by the unions regarding the continued relevance and necessity of the agreement.

The Fair Work Commission found that the application did not meet the statutory criteria for termination. The commission emphasised the importance of the existing agreement in protecting employees' rights and conditions, particularly in light of the dynamic and potentially challenging nature of the mining industry. The commission concluded that the evidence provided by Downer EDI Engineering did not convincingly demonstrate that the agreement was no longer in the best interests of the employees. As such, the application for termination was dismissed.

The final orders of the commission were that the application by Downer EDI Engineering Power Pty Ltd to terminate the BHPB Iron Ore Growth Projects Stage 1 AMWU & CFMEU Greenfields Agreement be dismissed. The agreement remained in effect, and the terms and conditions outlined within it continued to govern the employment relationship between Downer EDI Engineering and its employees represented by the AMWU and CFMEU.

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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