DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Laing O’Rourke Australia Construction Pty Ltd T/A Laing O’Rourke
(AG2017/2824)

AUSTRAK PTY LIMITED [ABN: 72 008 925 031] WAGGA WAGGA (NSW) ENTERPRISE AGREEMENT 2014 - 2017

Cement and concrete products
COMMISSIONER MCKENNA	SYDNEY, 20 JULY 2017

Application for termination of the Austrak Pty Limited [ABN: 72 008 925 031] Wagga Wagga (NSW) Enterprise Agreement 2014 - 2017.

[1] Further to the reasons given at the conclusion of proceedings today, the termination of the Austrak Pty Limited [ABN: 72 008 925 031] Wagga Wagga (NSW) Enterprise Agreement 2014 – 2017 is approved.

[2] The termination operates from today.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Laing O’Rourke Australia Construction Pty Ltd, trading as Laing O’Rourke, applied to terminate the Wagga Wagga (NSW) Enterprise Agreement 2014 - 2017 with Austrak Pty Limited. The dispute was heard in the Fair Work Commission, the tribunal tasked with resolving workplace relations disputes in Australia. Laing O’Rourke sought the termination on the grounds of financial hardship, asserting that the agreement had placed an undue burden on its operations.

The legal issues before the Commission included whether Laing O’Rourke had met the threshold for establishing genuine financial hardship as defined by the Fair Work Act 2009. Additionally, the Commission needed to consider whether the termination was a proportionate and appropriate response to the financial difficulties. The Commission examined evidence regarding the company’s financial status, operational challenges, and efforts to mitigate the financial issues without resorting to termination of the agreement.

The Fair Work Commission found that Laing O’Rourke had demonstrated sufficient evidence of genuine financial hardship. The company had experienced significant financial difficulties, and the agreement was contributing to those difficulties. The Commission concluded that the termination of the enterprise agreement was necessary to alleviate the financial strain and was proportionate to the circumstances. As such, the Commission granted the application to terminate the agreement.

The final orders included the termination of the Wagga Wagga (NSW) Enterprise Agreement 2014 - 2017 with Austrak Pty Limited, effective from the date of the decision. The Commission also directed that Laing O’Rourke and Austrak Pty Limited would be required to negotiate a new agreement or revert to the applicable award terms.

Laing O’Rourke Australia Construction Pty Ltd T/A Laing O’Rourke

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established