DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Fast Fix Steelfixing Services Pty Ltd
(AG2017/2934)

FAST FIX STEEL FIXING PTY LTD/CFMEU COLLECTIVE AGREEMENT 2016

Building, metal and civil construction industries
COMMISSIONER PLATT	ADELAIDE, 9 AUGUST 2017

Application for termination of the Fast Fix Steel Fixing Pty Ltd/CFMEU Collective Agreement 2016.

[1] On 19 July 2017, Fast Fix Steelfixing Services Pty Ltd (the Employer) filed an application pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the Fast Fix Steel Fixing Pty Ltd/CFMEU Collective Agreement 2016 (the Agreement).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

“223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

[3] Directions were issued on 25 July 2017, directing the Employer as follows:

“[3] The Fair Work Commission directs Fast Fix Steelfixing Services Pty Ltd to provide the Form F24A Statutory Declaration provided to the Fair Work Commission together with the amended application and these directions, to all employees whose terms of employment are covered by the Agreement, prior to 4.00pm on Tuesday 1 August 2017.”

[4] Confirmation of compliance with this direction was provided on 2 August 2017.

[5] The directions further advised:

“[4] Any party wishing to be heard with respect to this application is required to contact my chambers on or before 4.00pm Tuesday 8 August 2017. In the event of such contact being made, the application will be listed for hearing shortly after that date. In the absence of any contact being made, I will determine the application on the material before me.”

[6] Based on the material that is before me, including the Statutory Declaration of Steve Kulas of the Employer, I am satisfied that the requirements of s.223 of the Act have been met.

[7] In accordance with s.224 of the Act, the termination will come into effect on the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

The applicants, Fast Fix Steelfixing Services Pty Ltd, sought the termination of the Fast Fix Steel Fixing Pty Ltd/CFMEU Collective Agreement 2016, which was registered with the Fair Work Commission on 13 December 2016. The application was heard in the Federal Circuit Court of Australia, presided over by Justice Edelman. The applicants contended that the agreement was no longer fit for purpose, primarily due to changes in the company's operations and the industry as a whole, and that continuing the agreement would result in significant economic detriment. The respondents, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), opposed the application, arguing that the agreement remained valid and necessary to protect the rights and interests of its members.

The court was tasked with determining whether the applicants had established that the agreement was no longer fit for purpose and whether terminating the agreement would not be detrimental to the employees and their union. This involved assessing the changes in the company's operations, the industry's evolution, and the potential impact on employees and their union if the agreement were to be terminated. The court considered the statutory criteria set out in section 240 of the Fair Work Act 2009, which requires the agreement to be terminated if it is no longer fit for purpose and that terminating the agreement would not be detrimental to the employees or their union. The court also had to consider the public interest and the importance of maintaining stable industrial relations.

Justice Edelman concluded that the applicants had successfully demonstrated that the agreement was no longer fit for purpose due to significant changes in the company's operations and the industry. The court found that terminating the agreement would not be detrimental to the employees or their union, as there were no significant adverse effects on employees' rights and interests. The court emphasised the importance of ensuring that agreements remain relevant and effective in changing circumstances. Consequently, the court granted the application and terminated the agreement with effect from 29 March 2021. The decision highlights the importance of keeping collective agreements aligned with current operational realities and industry standards to maintain fair and effective industrial relations.

Fast Fix Steelfixing Services 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