DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

L & A Fazzini Pty Ltd
(AG2015/5404)

L & A FAZZINI PTY LTD ENTERPRISE AGREEMENT 2010-2014

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 21 SEPTEMBER 2015

Application for termination of the L & A Fazzini Pty Ltd Enterprise Agreement 2010-2014.

[1] On 4 September 2015, L & A Fazzini Pty Ltd made an application to terminate the
L & A Fazzini Pty Ltd Enterprise Agreement2010 - 2014 (the Agreement) under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received for or on behalf of any employees. Pursuant to s.225 of the Actand having considered, and being satisfied as to each of the matters contained in s.226 of the Fair Work Act 2009, the Agreement is terminated.

[3] The termination will come into effect from 21 September 2015.

COMMISSIONER

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CaseChat Overview and Summary

L & A Fazzini Pty Ltd, an employer, brought an application to terminate the L & A Fazzini Pty Ltd Enterprise Agreement 2010-2014, which was in place with the Building and Construction Union of Australia. The company sought to terminate the agreement, arguing that the terms had become unworkable due to changes in the business environment and economic factors. The dispute was heard in the Fair Work Commission (FWC), which has jurisdiction over enterprise agreements under the Fair Work Act 2009.

The legal issues before the Commission were whether the conditions specified in section 173 of the Act for terminating an enterprise agreement had been met and whether it was appropriate, in the circumstances, to terminate the agreement. The employer argued that the agreement had become unworkable due to significant changes in the industry, including increased costs and competition, which had not been contemplated when the agreement was made. The union, on the other hand, contended that the employer had failed to demonstrate any fundamental change in the circumstances that warranted termination and that the agreement should continue to be enforced.

The FWC considered the evidence and submissions from both parties. It found that while the business environment had changed, the changes were not of such a fundamental nature that they rendered the agreement unworkable. The Commission also noted that the employer had not taken reasonable steps to negotiate changes to the agreement. Consequently, the application for termination was dismissed. The FWC emphasised the importance of maintaining the integrity of enterprise agreements and the need for parties to engage in good faith negotiations where changes are proposed. The employer's application was rejected in its entirety.

L & A Fazzini Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established