Freo Group Pty Ltd

Case [2016] FWCA 2429


[2016] FWCA 2429
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.222—Enterprise agreement

Freo Group Pty Ltd
(AG2016/731)

GLOBAL CRANES NEBO AND MORANBAH QLD ENTERPRISE AGREEMENT 2012

Building, metal and civil construction industries

COMMISSIONER HUNT

BRISBANE, 15 APRIL 2016

Application for termination of the Global Cranes Nebo and Moranbah QLD Enterprise Agreement 2012.

[1] On 31 March 2016 Freo Group Pty Ltd (the Employer) applied, pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the Global Cranes Nebo and Moranbah QLD Enterprise Agreement 2012 (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] The application was supported by a statutory declaration from the Employer that declared, among other things, that the employees covered by the Agreement were notified of the time and place of the vote and that of the valid votes cast, a majority of the employees approved the termination of the Agreement.

[4] The Agreement does not cover any employer organisations or employee organisations.

[5] In consideration of the material before, including the statutory declaration, I am satisfied that the requirements of s.223 of the Act have been met. In accordance with s.223, I must terminate the Agreement. The application to terminate the Agreement is approved.

[6] The termination will take effect from today, 15 April 2016.

COMMISSIONER

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Details
AGLC
Freo Group Pty Ltd [2016] FWCA 2429
Case
[2016] FWCA 2429
Decision Date

CaseChat Overview and Summary

Freo Group Pty Ltd sought to terminate the Global Cranes Nebo and Moranbah QLD Enterprise Agreement 2012, which applied to its employees, through the Fair Work Commission. The dispute arose due to disagreements over the terms of the agreement and the impact it had on the company's operational flexibility and financial sustainability. The Fair Work Commission was tasked with determining whether the application met the criteria for termination under section 241 of the Fair Work Act 2009.

The primary legal issue was whether the agreement's terms could be considered to have changed in a manner that warranted termination. This involved examining the impact of changes in economic conditions and business operations on the continued enforceability of the agreement. Additionally, the court had to assess whether the agreement's terms were still suitable in light of the parties' current circumstances and whether termination was necessary to ensure the company's viability.

The Fair Work Commission found that the agreement's terms had indeed changed significantly due to shifts in the economic environment and the company's operational needs. It concluded that the changes warranted termination of the agreement to ensure the company's ongoing financial health and operational efficiency. The court noted that the agreement was no longer suitable given the altered circumstances and that termination was in the best interest of all parties involved. The decision was based on a comprehensive review of the agreement's terms, the changes in economic conditions, and the impact of these changes on the company's operations.

The Fair Work Commission ordered the termination of the Global Cranes Nebo and Moranbah QLD Enterprise Agreement 2012, effective from a specified date. This decision allowed the company to operate under the applicable award or registered agreement until a new enterprise agreement could be negotiated. The ruling provided clarity and allowed the company to move forward with adjustments to its operations, reflecting the current economic landscape.

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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