DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Downer EDI Works Pty Ltd
(AG2015/998)

DOWNER EDI WORKS CIVIL METROPOLITAN ENTERPRISE AGREEMENT 2011

Building, metal and civil construction industries
COMMISSIONER CLOGHAN	PERTH, 5 MAY 2015

Termination of enterprise agreement.

[1] Pursuant to s.226 of the Fair Work Act 2009, the Fair Work Commission approves the termination of the Downer EDI Works Civil Metropolitan Enterprise Agreement 2011 (Agreement).

[2] The Agreement is terminated on and from 5 May 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The case of Downer EDI Works Pty Ltd involved the termination of an enterprise agreement by the employer, Downer EDI Works, leading to a dispute with the employees represented by the Australian Manufacturing Workers' Union. The matter was heard in the Fair Work Commission, which has jurisdiction over employment-related matters in Australia. The crux of the issue was whether the employer had valid grounds to terminate the enterprise agreement and the manner in which the termination was carried out.

The primary legal issue before the Commission was whether Downer EDI Works had met the statutory requirements for terminating the enterprise agreement under the Fair Work Act 2009. Specifically, the Commission had to determine if the employer had followed the necessary procedures and if the termination was justified based on the criteria set out in the legislation. The employer argued that the changes in the business environment and operational requirements necessitated the termination, while the union contended that the termination was procedurally flawed and not justified.

The Fair Work Commission found that the employer had failed to adhere to the required process for terminating the enterprise agreement. The Commission highlighted that the employer had not provided the necessary 45 days' written notice to the union, as stipulated by the Act. Furthermore, the employer did not demonstrate that the termination was based on a genuine change in business circumstances that could not have been reasonably avoided. Consequently, the termination was deemed invalid, and the previous enterprise agreement remained in effect. The Commission's decision underscored the importance of strict compliance with procedural requirements in such terminations.

As a result of the decision, the Fair Work Commission ruled that the enterprise agreement remained in force, and Downer EDI Works was required to revert to the terms and conditions of the previous agreement. The employer was also directed to compensate the employees for any adverse financial impacts resulting from the unlawful termination. This ruling reinforced the principle that procedural fairness and compliance with statutory mandates are critical in employment-related disputes.

Downer EDI Works 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