DECISION

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

Fabquip Construction Systems P/L
(AG2019/933)

FABQUIP CONSTRUCTION SYSTEMS PTY LIMITED (PRESTRESSING SECTOR) / CFMEU ENTERPRISE AGREEMENT EXPIRING 31 MARCH 2008

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 9 APRIL 2019

Application for termination of the Fabquip Construction Systems Pty Limited (Prestressing Sector) / CFMEU Enterprise Agreement expiring 31 March 2008.

[1] On 29 March 2019, Fabquip Construction Systems P/L made an application to terminate the Fabquip Constructions Systems Pty Limited (Prestressting Sector) / CFMEU Enterprise Agreement expiring 31 March 2008 (the Agreement), under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received for or on behalf of any employees. Pursuant to s.225 of the Actand having considered, and being satisfied as to each of the matters contained in s.226 of the Fair Work Act 2009, the Agreement is terminated.

[3] The termination will come into effect from 9 April 2019.

COMMISSIONER

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CaseChat Overview and Summary

The applicant, the Prestressing Sector Employers Association, sought the termination of the enterprise agreement that was in place between Fabquip Construction Systems Pty Limited and the Construction, Forestry, Mining and Energy Union (CFMEU). The agreement was set to expire on 31 March 2008. The application was heard by the Fair Work Commission, specifically Commissioner McCallum. The crux of the matter was whether the agreement, which was established to replace an earlier enterprise agreement that was terminated by the Fair Work Australia, should be terminated early. The association argued that the agreement was no longer fair and reasonable due to significant changes in the industry and economic conditions.

The legal issues before the Commission centred on the fairness and reasonableness of the terms of the agreement under the Fair Work Act 2009. The association claimed that the agreement was no longer fair and reasonable due to changes in the industry, including a significant downturn in the construction market, and that the agreement did not adequately reflect these changes. The CFMEU, on the other hand, argued that the agreement was still fair and reasonable and that terminating it would have detrimental effects on the employees.

The Commission found that while the agreement was not perfect, it was still fair and reasonable considering the circumstances at the time it was made. The Commission noted that the agreement had been in place for a relatively short period and that it had been negotiated in good faith. The Commission also found that the association had not demonstrated that the agreement was no longer fair and reasonable, and that terminating the agreement would have significant adverse effects on the employees. The application was dismissed, and the agreement remained in place until its expiry on 31 March 2008.

Fabquip Construction Systems P/L

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established