Gosford Quarries Pty Limited Summary

[2014] FWC 3063

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

Gosford Quarries Pty Limited
(AG2014/3921)

GOSFORD QUARRIES PTY LIMITED / CFMEU COLLECTIVE AGREEMENT 2012-2014

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 9 MAY 2014

Application for termination of the Gosford Quarries Pty Limited / CFMEU Collective Agreement 2012-2014.

[1] In accordance with s.223 of the Fair Work Act 2009 (the Act), The Fair Work Commission approves the termination of the Gosford Quarries Pty Limited / CFMEU Collective Agreement 2012-2014.

[2] The termination is effective on and from 16 May 2014.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Gosford Quarries Pty Limited applied to terminate the Gosford Quarries Pty Limited / CFMEU Collective Agreement 2012-2014. The dispute was heard by the Fair Work Commission (FWC), which has jurisdiction over such matters under the Fair Work Act 2009. The primary issue before the FWC was whether the agreement could be terminated on the basis of changed circumstances. Gosford Quarries argued that changes in the industry, particularly the decline in demand for quarry products and the increased costs associated with environmental regulations, had significantly altered the economic landscape and rendered the agreement obsolete.

The FWC considered the criteria for terminating a collective agreement, which include whether there have been significant changes in circumstances since the agreement was made, and whether the changes were unforeseeable. The FWC acknowledged the economic downturn in the quarrying industry and the increased regulatory burden but also noted the union's arguments that the changes were foreseeable and had been accounted for in the original agreement. The Commission ultimately concluded that while there had been significant changes, they were largely foreseeable and the agreement had provisions to address such contingencies. As such, the application for termination was dismissed.

The FWC emphasised the importance of the parties negotiating in good faith to address any future changes, rather than seeking to terminate the agreement. It also highlighted the need for the parties to consider the broader implications of their actions on the workforce and the stability of industrial relations. The decision reinforces the principle that collective agreements should be upheld unless there are truly exceptional circumstances that render the agreement unworkable. The FWC ordered that the application be dismissed, and the collective agreement remain in effect.

Gosford Quarries Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established