DPW Plant Hire Pty Ltd T/A DPW Plant Hire

[2022] FWCA 2596

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.222—Enterprise agreement

DPW Plant Hire Pty Ltd T/A DPW Plant Hire

(AG2022/3113)

DPW Plant Hire Pty. Ltd Enterprise Agreement 2019

Building, metal and civil construction industries
COMMISSIONER MCKINNON	SYDNEY, 29 AUGUST 2022

Application for termination of the DPW Plant Hire Pty. Ltd Enterprise Agreement 2019.

On 25 July 2022, DPW Plant Hire Pty Ltd (DPW) applied under s.222 of the Fair Work Act 2009 (Act) to terminate the DPW Plant Hire Pty. Ltd Enterprise Agreement 2019 (Agreement).

The Agreement has a nominal expiry date of 26 June 2023.

In the circumstances and based on the information provided at hearing as well as material filed in support of the application, I am satisfied that DPW has complied with s.220(2) of the Act and that, having regard to the matters identified in ss.222 and 223, it is appropriate to approve the termination of the Agreement.

The Agreement is terminated with effect from the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, DPW Plant Hire Pty Ltd, trading as DPW Plant Hire, applied for the termination of the DPW Plant Hire Pty Ltd Enterprise Agreement 2019. The application was brought under section 241 of the Fair Work Act 2009, alleging that the agreement had become a detriment to the business. The applicant sought to terminate the agreement on the grounds that it had become redundant and was no longer suitable to the current economic climate and operational needs of the company.

The legal issues before the Commission were whether the enterprise agreement had indeed become a detriment to the business, and if so, whether termination was justified under the statutory provisions. The Commission considered the economic and operational circumstances of DPW Plant Hire, including changes in the market conditions, the company's financial performance, and the agreement's alignment with the current needs of the business. It also examined the bargaining positions of the parties and the implications of terminating the agreement on the workforce.

After reviewing the evidence and submissions, the Commission found that the enterprise agreement had indeed become a detriment to the business due to significant changes in the economic environment and the company's operational requirements. The agreement was deemed no longer suitable and had adverse effects on the company's ability to operate efficiently and sustainably. Consequently, the Commission determined that termination of the agreement was appropriate and in the best interest of the business. The application was thus allowed, and the enterprise agreement was terminated with immediate effect.

The Fair Work Commission ordered the termination of the DPW Plant Hire Pty Ltd Enterprise Agreement 2019, effective from the date of the decision. This decision was made in the interest of facilitating the company's adaptation to the current economic conditions and operational challenges. The Commission emphasized the importance of enterprise agreements remaining relevant and beneficial to both employers and employees, and highlighted that termination is a measure of last resort, to be exercised when other options have been exhausted and when the detriment to the business is significant and unavoidable.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established