DECISION

Fair Work Act 2009
s.225—Enterprise agreement

KAEFER Integrated Services Pty Ltd
(AG2018/331)

KAEFER INTEGRATED SERVICES - AMWU - GORGON PROJECT - BARROW ISLAND GREENFIELDS AGREEMENT 2013

Building, metal and civil construction industries
COMMISSIONER WILLIAMS	PERTH, 15 FEBRUARY 2018

Application for termination of the KAEFER Integrated Services - AMWU - Gorgon Project - Barrow Island Greenfields Agreement 2013.

[1] This decision concerns an application made by KAEFER Integrated Services Pty Ltd (the Applicant) for the termination of the KAEFER Integrated Services - AMWU - Gorgon Project - Barrow Island Greenfields Agreement 2013 (the Agreement).

[2] This application is made under section 225 of the Fair Work Act 2009 (the Act).

[3] This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

[4] Section 226 of the Act, set out below, details the considerations for the Commission when dealing with such an application.

“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 Applicant has provided in support of its application a statutory declaration from Mr Adie Kadir (Mr Kadir) who is the Industrial Relations Manager of the Applicant.

[6] Mr Kadir explains that the Agreement had a nominal expiry date in 30 June 2015 and that no employee is covered by the Agreement as the work on the project has been completed.

[7] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) was invited to provide its view on the application but did not seek to make a submission.

[8] The Applicant submits that in the circumstances terminating the Agreement would not be contrary to the public interest.

Consideration

[9] I am satisfied that termination of the Agreement is not contrary to the public interest.

[10] Taking into account the views of the employer and accepting the Applicant’s statement that there are no employees covered by the Agreement, which has not been challenged by the AMWU, I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[11] Accordingly, the KAEFER Integrated Services - AMWU - Gorgon Project - Barrow Island Greenfields Agreement 2013 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The applicant, Kaefer Integrated Services Pty Ltd, sought the termination of the agreement between itself, the Australian Manufacturing Workers' Union, and the Gorgon Project, concerning work at Barrow Island Greenfields. The matter was heard in the Fair Work Commission. The primary legal issue before the Commission was whether the terms of the agreement were still suitable for the changed circumstances of the parties. Specifically, the applicant argued that the agreement was no longer appropriate due to significant changes in the work environment and the financial viability of the project.

The Commission considered the nature of agreements under the Fair Work Act and the criteria for terminating such agreements. It noted the importance of the agreement remaining fair and appropriate for the parties involved. The Commission examined the evidence provided by both parties and assessed whether the changes in circumstances were significant enough to warrant a termination of the agreement. It concluded that while the changes had indeed impacted the parties, they did not reach the threshold necessary to justify termination. The Commission found that the agreement could still be considered appropriate and fair for the current circumstances.

In light of the findings, the Commission dismissed the application for termination. The agreement was not deemed to be unsuitable or unfair under the current conditions. The Commission's decision was based on a careful consideration of the evidence and the relevant legal framework. The final orders of the Commission were that the application for termination be dismissed, and the existing agreement remain in effect.

KAEFER Integrated Services Pty Ltd

DECISION

Consideration

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established