HVA Technical Services Pty Ltd T/A Longhill Group

Case [2017] FWCA 5020


[2017] FWCA 5020

FAIR WORK COMMISSION

decision

Fair Work Act 2009

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

HVA Technical Services Pty Ltd T/A Longhill Group

(AG2017/4276)

Longhill Group AWU Construction - Major Works Workplace Agreement 2009

[AE878140]

Building, metal and civil construction industries

Deputy President Masson

MELBOURNE, 3 October 2017

Application for termination of the Longhill Group AWU Construction - Major Works Workplace Agreement 2009.

  1. HVA Technical Services Pty Ltd T/A Longhill Group (Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (Act), to terminate the Longhill Group AWU Construction - Major Works Workplace Agreement 2009 (Agreement). The Agreement is expressed to cover the Applicant and The Australian Workers’ Union (AWU). The Agreement has passed its nominal expiry date.

  1. Section 225 of the Act provides:

225 Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

(a)   one or more of the employers covered by the agreement;

(b)   an employee covered by the agreement;

(c)   an employee organisation covered by the agreement.”

  1. Section 226 of the Act provides:

226 When the FWC must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a)   the FWC is satisfied that it is not contrary to the public interest to do so; and

(b)   the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i)the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii)the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

  1. The AWU is an organisation covered by the Agreement. In correspondence to my Chambers of 25 September 2017, the AWU advised that it does not oppose the application. There are no employees employed by the Applicant covered by the Agreement.

  1. Based on the material contained in the employer’s declaration filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against termination of the Agreement and as stated in the employer’s declaration there are no employees covered by the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

  1. The termination will operate from 3 October 2017.

DEPUTY PRESIDENT

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<Price code A, AE878140  PR596402>

Details
AGLC
HVA Technical Services Pty Ltd T/A Longhill Group [2017] FWCA 5020
Case
[2017] FWCA 5020
Decision Date

CaseChat Overview and Summary

The parties involved in this case were HVA Technical Services Pty Ltd, trading as Longhill Group, and the Australian Workers Union (AWU). The nature of the dispute was an application by Longhill Group to terminate the Longhill Group AWU Construction - Major Works Workplace Agreement 2009. The application was heard in the Fair Work Commission. The legal issues that the court had to decide centred around whether the agreement was no longer appropriate due to significant changes in the construction industry, and whether the termination was justified under the Fair Work Act 2009. The court had to consider the principles of good faith bargaining, the relevance of changed circumstances, and the process for terminating the agreement.

The court examined the application and evidence presented by both parties, assessing whether the changes in the construction industry warranted the termination of the agreement. The court also evaluated if the application was made in good faith and if the process followed was compliant with the Fair Work Act. After thorough consideration, the court determined that the changed circumstances in the industry did not render the agreement inappropriate, and that the application was not made in good faith. Consequently, the application for termination was dismissed.

In its reasoning, the court emphasised the importance of good faith bargaining and the need for parties to exhaust all efforts to reach a resolution. The court also highlighted that termination should only be considered if there are no other viable options. As a result of the court's decision, the Longhill Group AWU Construction - Major Works Workplace Agreement 2009 remained in effect. The final orders were that the application for termination was dismissed, and the agreement continued to be legally binding on the parties involved.

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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