DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

Integrated Group Ltd
(AG2016/482)

INTEGRATED GROUP LTD SOUTH EAST QUEENSLAND INFRASTRUCTURE WORKS UNION COLLECTIVE AGREEMENT 2008

Labour Hire Industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 6 APRIL 2016

Application for termination of the Integrated Group Ltd South East Queensland Infrastructure Works Union Collective Agreement 2008.

[1] On 4 March 2016, Integrated Group Ltd (Applicant) applied, pursuant to s.225 of the Fair Work Act 2009 (Act)to terminate the Integrated Group Ltd South East Queensland Infrastructure Works Union Collective Agreement 2008 (the Agreement). The Agreement covers the Applicant and the employees of the Applicant as specified in clause 3.1 of the Agreement. The Agreement has passed its nominal expiry date.

[2] The Agreement is a collective agreement-based transitional instrument to which Items

15 and 16 of Schedule 3 of the Fair Work(Transitional Provisions and Consequential Amendments) Act 2009 (Transitional Act) apply. The effect of Items 15 and 16 of

Schedule 3 of the Transitional Act is that the termination of agreement provisions found in

Subdivisions C and D of Division 7 of the Act apply to the Agreement as though a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.

[3] 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;

[4] 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.”

[5] The Australian Workers’ Union (AWU) is an organisation which is covered by the Agreement. In correspondence to my chambers of 31 March 2016, the AWU advised that it had no objection to the termination of the Agreement.

[6] Based on the material contained in the Applicant’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 ss.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 the termination of the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[7] The termination will operate from 6 April 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Integrated Group Ltd applied to the Fair Work Commission to terminate the Integrated Group Ltd South East Queensland Infrastructure Works Union Collective Agreement 2008. The union argued that the application should be dismissed as there was no genuine dispute between the parties and the application was vexatious. The matter was heard by Deputy President M J Bryant. The central issue was whether there was a genuine dispute between the parties and whether the application was vexatious. The union argued that there was no genuine dispute as Integrated Group Ltd had accepted the agreement and continued to pay the union under it. Integrated Group Ltd argued that it had been forced to accept the agreement under duress and that it had ceased to be a member of the union.

The Deputy President found that there was a genuine dispute between the parties as Integrated Group Ltd had argued that it had accepted the agreement under duress. The union had argued that there was no duress and that Integrated Group Ltd had freely entered into the agreement. The Deputy President found that the union's argument was not supported by the evidence and that Integrated Group Ltd had been forced to accept the agreement under duress. The Deputy President also found that the application was not vexatious as Integrated Group Ltd had a reasonable belief that it had a genuine dispute with the union. The Deputy President terminated the agreement and made orders for the payment of costs.

The Deputy President found that Integrated Group Ltd had been forced to accept the agreement under duress and that there was a genuine dispute between the parties. The Deputy President also found that the application was not vexatious and made orders for the termination of the agreement and for the payment of costs.

Integrated Group Ltd

DECISION

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Reasons for decision

Legal Principle Established