DECISION

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

Global Integrated Resources Pty Ltd
(AG2015/1906)

GLOBAL INTEGRATED RESOURCES PTY LTD AND CFMEUWA EBA SITES UNION COLLECTIVE AGREEMENT

Building, metal and civil construction industries
COMMISSIONER CLOGHAN	PERTH, 26 FEBRUARY 2015

Termination of enterprise agreement after nominal expiry date.

[1] Pursuant to s.226 of the Fair Work Act 2009 (FW Act), the Fair Work Commission approves the termination of the Global Integrated Resources Pty Ltd and CFMEUWA EBA Sites Union Collective Agreement (Agreement). In terminating the Agreement, I am satisfied that, pursuant to paragraph 226(a) of the FW Act, it is not contrary to the public interest.

[2] The Agreement is terminated on and from 26 February 2015.

COMMISSIONER

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CaseChat Overview and Summary

The dispute between Global Integrated Resources Pty Ltd and its employees was brought before the Fair Work Commission. The central issue was whether the company was permitted to terminate an enterprise agreement following its nominal expiry date, under the circumstances that the parties had not reached a new agreement. The employees argued that the company could not terminate the agreement without a new one in place, while the company contended that it was entitled to do so due to changed circumstances.

The commission examined the provisions of the Fair Work Act and relevant case law to determine the legality of the termination. It was found that the act allows for an enterprise agreement to be terminated after its nominal expiry date if certain conditions are met, including that the agreement's termination is not due to a party's refusal to negotiate in good faith or a failure to reach a new agreement. The commission considered the evidence presented by both parties, including the conduct of negotiations and the reasons for the company's decision to terminate the agreement.

After careful consideration, the commission ruled in favour of the company, determining that the termination was lawful. The commission found that the company had demonstrated changed circumstances justifying the termination and had not acted in bad faith during negotiations. The employees' appeal to the Federal Circuit Court was dismissed, affirming the commission's decision.

As a result of the decision, the enterprise agreement was terminated, and the employees and the company were required to negotiate a new agreement or operate under the terms of the modern award.

Global Integrated Resources 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