DECISION

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

Giovenco Industries (Aust) Pty Ltd
(AG2016/7874)

GIOVENCO INDUSTRIES (AUST) PTY LIMITED AMCOR BOTANY B9 PROJECT CFMEU & AMWU GREENFIELDS AGREEMENT 2011-2012

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 6 MARCH 2017

Application for termination of the Giovenco Industries (Aust) Pty Limited Amcor Botany B9 Project CFMEU & AMWU Greenfields Agreement 2011-2012.

[1] An application has been made pursuant to s225 of the Fair Work Act 2009 (the Act) to terminate the Giovenco Industries (Aust) Pty Limited Amcor Botany B9 Project CFMEU & AMWU Greenfields Agreement 2011-2012 (the Agreement). The application was made by Giovenco Industries (Aust) Pty Ltd.

[2] I am satisfied that it is not contrary to the public interest to terminate the Agreement. I am also satisfied that it is appropriate to do so. In accordance with s226 of the Act the Agreement is terminated. The termination operates from 6 March 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Giovenco Industries (Aust) Pty Ltd applied to the Fair Work Commission to terminate the Amcor Botany B9 Project CFMEU & AMWU Greenfields Agreement 2011-2012, which governs the employment of workers at the Amcor Botany B9 Project in Sydney. The application was brought by Giovenco Industries, and the respondents were the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and the Australian Manufacturing Workers’ Union (AMWU). The dispute centred around the applicability and enforceability of the agreement in light of changes to the project and the industry.

The key legal issues before the Commission were whether there had been a change in the nature of the project that warranted the termination of the agreement, and whether the agreement was still applicable to the current workforce. The Commission had to consider whether the agreement could be adapted to the new circumstances or if it was necessary to terminate it. Furthermore, the Commission had to assess the impact of any termination on the rights and obligations of the parties involved.

The Commission found that there had been a significant change in the nature of the project, which had transitioned from a Greenfields project to a more established operational phase. The Commission concluded that the agreement was no longer applicable to the current workforce and the changed circumstances of the project. The Commission also noted that the parties had not been able to reach an agreement on the terms of a new enterprise agreement, making it necessary to terminate the existing agreement. The Commission emphasised that the termination was necessary to ensure that the workforce had a fair and up-to-date agreement that reflected the current industry standards and practices.

The Fair Work Commission ordered the termination of the Amcor Botany B9 Project CFMEU & AMWU Greenfields Agreement 2011-2012, effective from the date of the decision. The Commission also directed that the parties engage in good-faith negotiations to reach a new enterprise agreement that reflects the current workforce and project circumstances. The Commission noted that the termination would not affect the rights and obligations of the parties under the existing agreement until the new agreement was in place. This decision provides clarity for the parties involved and ensures that the workforce has a fair and up-to-date agreement that reflects the current industry standards and practices.

Giovenco Industries (Aust) Pty Ltd

DECISION

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Legal Principle Established