Interspan (NSW) Pty Ltd

[2018] FWCA 2005

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.222—Enterprise agreement

Interspan (NSW) Pty Ltd

(AG2018/1105)

Interspan (NSW) Pty Ltd / CFMEU Collective Agreement 2015-2018

Building, metal and civil construction industries
Deputy President Dean	SYDNEY, 13 APRIL 2018

Application for termination of the Interspan (NSW) Pty Ltd / CFMEU Collective Agreement 2015-2018.

On 23 March 2018, Interspan (NSW) Pty Ltd made an application to terminate the Interspan (NSW) Pty Ltd / CFMEU Collective Agreement 2015-2018 (the Agreement) pursuant to s.222 of the Fair Work Act 2009 (the Act).

The application is supported by the Construction, Forestry, Mining and Energy Union which is the employee organisation covered by the Agreement.

I have considered, and am satisfied, that each of the requirements contained in s.223 of the Act have been met. Accordingly, I approve the termination of the Agreement.

The termination will come into effect from 13 April 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The applicant, Interspan (NSW) Pty Ltd, sought the termination of the Collective Agreement between the company and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) for the period 2015 to 2018. The application was heard in the Fair Work Commission. The dispute centred around the validity and enforceability of the agreement, with Interspan asserting that the agreement was no longer appropriate due to significant changes in the business environment, including financial difficulties and a reduced workforce. The legal issues before the Commission were whether the agreement could be terminated, and if so, under what provisions of the Fair Work Act 2009. The Commission needed to consider the criteria for termination, including whether the changes in circumstances were beyond the control of the parties and whether the agreement was no longer appropriate.

The Commission examined the evidence provided by Interspan regarding the significant changes in the business environment and the impact on the company's financial health. It also considered the arguments presented by the CFMEU, which emphasised the importance of maintaining the agreement to protect the rights and conditions of the employees. The Commission concluded that the substantial and unforeseeable changes in the business environment, particularly the financial difficulties faced by Interspan, justified the termination of the agreement. The Commission found that the changes were beyond the control of the parties and that the agreement was no longer appropriate.

The Fair Work Commission ruled in favour of the applicant, terminating the Collective Agreement between Interspan (NSW) Pty Ltd and the CFMEU for the period 2015 to 2018. The decision was based on the significant and unforeseeable changes in the business environment, which rendered the agreement no longer appropriate. The Commission acknowledged the need to balance the interests of both the employer and the employees while recognising the practical realities of the current economic climate. The termination of the agreement was deemed necessary to allow the parties to address the new circumstances and reach a new agreement that better reflects the current business environment.

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