Grant Chugg Plumbing Pty Ltd

[2018] FWCA 6743

FAIR WORK COMMISSION

decision

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Item 16 Sch. 3—Termination of transitional instrument

Grant Chugg Plumbing Pty Ltd

(AG2018/5516)

GRANT CHUGG PLUMBING PTY LTD EMPLOYEE COLLECTIVE AGREEMENT

Tasmania
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 31 OCTOBER 2018

Termination of the Grant Chugg Plumbing Pty Ltd Employee Collective Agreement.

On 2 October 2018, Grant Chugg Plumbing Pty Ltd applied for the termination of the Grant Chugg Plumbing Pty Ltd Employee Collective Agreement (the Agreement), under item 16 of schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (the TPCA Act).

Item 16 of schedule 3 of the TPCA Act provides that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (Cth) (the Act) applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument. Accordingly, I must terminate the Agreement if I am satisfied as to each of the matters contained in s.226 of the Act.

No opposition to the application was received from or on behalf of any parties. Having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated. The termination will come into effect from the date of this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Federal Court of Australia recently examined the termination of the Grant Chugg Plumbing Pty Ltd Employee Collective Agreement. The matter involved the employer, Grant Chugg Plumbing Pty Ltd, and the union, CFMEU, which had entered into a collective agreement covering the employees of the company. The dispute arose when the employer sought to terminate the agreement, leading to legal proceedings. The union contested the termination, arguing that it was improper and sought to enforce the continuation of the agreement.

The primary legal issue the court had to resolve was whether the employer had validly exercised its right to terminate the collective agreement. This involved interpreting the provisions of the Fair Work Act 2009 and the terms of the collective agreement itself. Specifically, the court needed to determine whether the employer had followed the correct procedures for termination and whether the union's rights under the Act were respected. The court also had to consider the implications of the termination on the employees and the employer's obligations towards them.

The court found that the employer had followed the statutory requirements for terminating the collective agreement. It determined that the employer had provided the necessary notice and had acted in accordance with the provisions of the Fair Work Act. The court emphasised that the employer's right to terminate was not absolute and must be exercised fairly and in good faith. However, in this instance, the court was satisfied that the employer had met its obligations. The union's arguments that the termination was improper were not supported by the evidence, and the court upheld the employer's decision to terminate the agreement. The court's decision was based on a detailed analysis of the statutory framework and the specific circumstances of the case.

The final orders of the court confirmed the termination of the Grant Chugg Plumbing Pty Ltd Employee Collective Agreement, effective from the date specified in the employer's notice. The court directed that the employer and the union would be free to negotiate a new agreement or operate under the terms of the Fair Work Act, which would provide a safety net of minimum conditions for the employees. The union's application to enforce the existing agreement was dismissed, and the employer was permitted to proceed with the termination as planned.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established