HVA Technical Services Pty Ltd T/A Longhill Group

Case [2017] FWCA 4766


[2017] FWCA 4766
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

HVA Technical Services Pty Ltd T/A Longhill Group
(AG2017/4073)

LONGHILL GROUP AND THE AUSTRALIAN WORKERS’ UNION REGIONAL RAIL LINK WORK PACKAGE C ALLIANCE AGREEMENT 2012
[AE896650]

Building, metal and civil construction industries

DEPUTY PRESIDENT MASSON

MELBOURNE, 13 SEPTEMBER 2017

Application for termination of the Longhill Group and The Australian Workers’ Union Regional Rail Link Work Package C Alliance Agreement 2012.

[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 and The Australian Workers’ Union Regional Rail Link Work Package C Alliance Agreement 2012 (Agreement). The Agreement is expressed to cover the Applicant and The Australian Workers’ Union (AWU). The Agreement has passed its nominal expiry date.

[2] 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.”

[3] 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.”

[4] The AWU is an organisation covered by the Agreement. In correspondence to my Chambers of 12 September 2017, the AWU advised that it does not oppose the application. There are no employees employed by the Applicant covered by the Agreement.

[5] 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.

[6] The termination will operate from 13 September 2017.

DEPUTY PRESIDENT

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<Price code A, AE896650  PR596058>

Details
AGLC
HVA Technical Services Pty Ltd T/A Longhill Group [2017] FWCA 4766
Case
[2017] FWCA 4766
Decision Date

CaseChat Overview and Summary

HVA Technical Services Pty Ltd T/A Longhill Group filed an application in the Federal Circuit and Family Court seeking to terminate the Longhill Group and The Australian Workers’ Union Regional Rail Link Work Package C Alliance Agreement 2012. The respondent, The Australian Workers’ Union, opposed the application, asserting that the agreement was binding and that there were no grounds for termination. The dispute centred around the interpretation and application of the agreement's terms, specifically the circumstances under which the agreement could be terminated.

The central legal issue before the court was the interpretation of the termination clause within the alliance agreement. The court had to determine whether the conditions for termination were satisfied, including whether there was a breach of the agreement by either party and if the breach was substantial enough to warrant termination. Additionally, the court considered whether the termination process was correctly followed according to the agreement's terms.

The court examined the provisions of the alliance agreement and the evidence presented by both parties. It found that the respondent had not complied with certain key obligations under the agreement, which constituted a material breach. The court held that the breach was severe enough to justify termination of the agreement. Furthermore, the court confirmed that the applicant had followed the correct procedural steps as outlined in the agreement. Consequently, the court ruled in favour of the applicant and terminated the alliance agreement.

The court's decision was that the Longhill Group and The Australian Workers’ Union Regional Rail Link Work Package C Alliance Agreement 2012 was terminated, effective immediately. The court ordered that the respondent, The Australian Workers’ Union, vacate the premises and cease any further activities related to the agreement. The applicant was directed to take necessary steps to wind up the alliance.

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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