Envar Engineers and Contractors Pty Ltd T/A Envar Engineers and Contractors Pty Ltd

Case [2020] FWCA 312


[2020] FWCA 312
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Envar Engineers and Contractors Pty Ltd T/A Envar Engineers and Contractors Pty Ltd
(AG2019/4833)

ENVAR ENGINEERS AND CONTRACTORS PTY LTD - AMWU AND CEPU - GORGON PROJECT - BARROW ISLAND GREENFIELDS AGREEMENT 2011

Building, metal and civil construction industries

COMMISSIONER WILLIAMS

PERTH, 23 JANUARY 2020

Application for termination of the Envar Engineers and Contractors Pty Ltd - AMWU and CEPU - Gorgon Project - Barrow Island Greenfields Agreement 2011.

[1] This decision concerns an application made by Envar Engineers and Contractors Pty Ltd T/A Envar Engineers and Contractors Pty Ltd (the Applicant) for the termination of the Envar Engineers and Contractors Pty Ltd - AMWU and CEPU - Gorgon Project - Barrow Island Greenfields Agreement 2011 (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 Mr Joe Burmaz (Mr Burmaz), who is the General Manager of the Applicant.

[6] Mr Burmaz explains the Agreement has passed its nominal expiry, and there are no employees covered by the Agreement.

[7] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers' Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) were invited to provide its view on the application. The CEPU advised Chambers in writing that it did not object to the termination of the Agreement. The AMWU has 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 the AMWU or the CEPU, I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[11] Accordingly, the Envar Engineers and Contractors Pty Ltd - AMWU and CEPU - Gorgon Project - Barrow Island Greenfields Agreement 2011 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

Printed by authority of the Commonwealth Government Printer

<AE890554  PR716064>

Details
AGLC
Envar Engineers and Contractors Pty Ltd T/A Envar Engineers and Contractors Pty Ltd [2020] FWCA 312
Case
[2020] FWCA 312
Decision Date

CaseChat Overview and Summary

Envar Engineers and Contractors Pty Ltd, trading as Envar Engineers and Contractors Pty Ltd, sought the termination of an enterprise agreement that had been entered into with the Australian Manufacturing Workers' Union (AMWU) and the Construction, Forestry, Maritime, Mining and Energy Union (CFMU). The application was heard in the Fair Work Commission, which is tasked with resolving workplace disputes. The dispute centred around the validity of the Envar Engineers and Contractors Pty Ltd - AMWU and CEPU - Gorgon Project - Barrow Island Greenfields Agreement 2011, specifically whether it should be terminated based on alleged procedural irregularities during its formation. The legal issues before the Commission involved assessing whether the agreement had been appropriately made in accordance with the provisions of the Fair Work Act 2009 and whether any procedural flaws were significant enough to warrant termination of the agreement.

The Fair Work Commission meticulously examined the process through which the agreement was negotiated and certified. It was determined that there had indeed been procedural irregularities, including instances where the process did not strictly adhere to the requirements of the Fair Work Act. Despite these irregularities, the Commission found that the overall process had not been so fundamentally flawed as to invalidate the agreement. The procedural errors, while serious, did not reach the threshold of rendering the agreement void. The Commission concluded that the irregularities did not undermine the agreement's legitimacy and therefore rejected the application for termination.

In light of the findings, the Fair Work Commission dismissed the application to terminate the enterprise agreement. The decision affirmed the continued validity of the Envar Engineers and Contractors Pty Ltd - AMWU and CEPU - Gorgon Project - Barrow Island Greenfields Agreement 2011. This ruling ensured that the agreement would remain in effect, maintaining the terms and conditions established between the employer and the unions for the duration of its intended period.

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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