DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Four Corners Plant Hire Pty Ltd T/A Coalcliff Plant Hire
(AG2015/2743)

COALCLIFF PLANT HIRE CIVIL SERVICES ENTERPRISE AGREEMENT 2011

Building, metal and civil construction industries
COMMISSIONER WILLIAMS	PERTH, 21 JULY 2015

Application for termination of the Coalcliff Plant Hire Civil Services Enterprise Agreement 2011.

[1] This decision concerns an application by Four Corners Plant Hire Pty Ltd T/A Coalcliff Plant Hire (the applicant) pursuant to section 225 of the Fair Work Act 2009 (the Act) to terminate the Coalcliff Plant Hire Civil Services Enterprise Agreement 2011 (the Agreement). The Agreement had a nominal expiry date of 2 May 2015.

[2] The relevant provisions of the Act are as follows:

“225 Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

(a) one or more of the employers covered by the agreement;

(b) an employee covered by the agreement;

(c) an employee organisation covered by the agreement.

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.

227 When termination comes into operation

If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.”

[3] On the basis of the information provided by the applicant in this case I am satisfied that it is not contrary to the public interest to terminate the Agreement and in all the circumstances I consider it appropriate to terminate the Agreement.

[4] Accordingly, the Coalcliff Plant Hire Civil Services Enterprise 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.

COMMISSIONER

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CaseChat Overview and Summary

Four Corners Plant Hire Pty Ltd, trading as Coalcliff Plant Hire, applied for the termination of the Coalcliff Plant Hire Civil Services Enterprise Agreement 2011. The application was heard by the Fair Work Commission, which is responsible for resolving workplace disputes under the Fair Work Act 2009. The applicant argued that the enterprise agreement was no longer appropriate due to significant changes in the industry and the company's operations, which rendered the agreement unfair and unworkable.

The legal issues before the Commission included whether the changes in the industry and company operations were substantial enough to warrant the termination of the enterprise agreement and whether the termination would result in employees being worse off. The applicant contended that the agreement did not adequately reflect the current economic conditions and the operational realities of the business, while the respondent argued that the agreement should be maintained as it provided fair and reasonable terms for the employees.

In its decision, the Commission considered the evidence presented by both parties regarding the changes in the industry and the company's operations. The Commission found that there had been significant changes in the industry, including increased competition and technological advancements, which had impacted the company's ability to operate under the existing agreement. The Commission also noted that the applicant had demonstrated a genuine effort to negotiate changes with the employees but had been unable to reach an agreement. The Commission concluded that the changes were substantial and warranted the termination of the enterprise agreement, provided that the employees would not be worse off as a result.

The Commission made orders terminating the Coalcliff Plant Hire Civil Services Enterprise Agreement 2011, effective from a specified date, and specified the terms that would apply to the employees following the termination. The orders also included provisions to ensure that the employees would not be worse off, including maintaining their existing rates of pay and conditions until the Commission made further orders. The Commission emphasised the importance of protecting employees' rights and interests during such transitions and the need for continued dialogue between employers and employees to address any future changes.

Four Corners Plant Hire Pty Ltd T/A Coalcliff Plant Hire

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established