DECISION

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

Laing O'Rourke Australia Construction Pty Ltd T/A Laing O'Rourke
(AG2017/1472)

EXPANDED OPERATIONS - QUEENSLAND AND CFMEU ENTERPRISE AGREEMENT 2009-2011

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 23 MAY 2017

Application for termination of the Expanded Operations - Queensland and CFMEU Enterprise Agreement 2009-2011.

[1] On 28 April 2017, Laing O’Rourke Australia Pty Ltd made an application to terminate the Expanded Operations - Queensland and CFMEU Enterprise Agreement 2009-2011 (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 23 May 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The applicant, Laing O'Rourke Australia Construction Pty Ltd, trading as Laing O'Rourke, sought the termination of the Expanded Operations - Queensland and CFMEU Enterprise Agreement 2009-2011, which governed the employment conditions of its employees. The application was made to the Fair Work Commission, which had the jurisdiction to hear and determine the matter under the Fair Work Act 2009. The applicant contended that the agreement was no longer suitable for the parties' circumstances due to significant changes in the construction industry, including the effects of the global financial crisis and subsequent downturn in the industry.

The primary legal issue for the Commission was whether the changes in industry circumstances provided sufficient grounds for terminating the enterprise agreement. The Commission had to consider whether the agreement was no longer suitable for the parties and if it was in the best interests of the employees and the industry to terminate the agreement. The applicant argued that the agreement was no longer suitable due to the significant changes in the industry, which had impacted the financial viability of construction projects and made it difficult for employers to meet the terms of the agreement. The Commission also had to consider the potential impact on the employees if the agreement was terminated and whether there was a need for a new agreement to better reflect the current industry conditions.

In deciding the matter, the Commission found that the changes in industry circumstances were significant and had a substantial impact on the construction industry. However, the Commission was not satisfied that the changes were so profound that they rendered the agreement no longer suitable for the parties. The Commission noted that the agreement had been in place for several years and had been negotiated between the parties in good faith. The Commission also considered the potential impact on employees if the agreement was terminated and found that it was not in the best interests of the employees or the industry to terminate the agreement at that time. The Commission held that the agreement remained suitable for the parties and dismissed the application for termination.

The Fair Work Commission dismissed the application for termination of the Expanded Operations - Queensland and CFMEU Enterprise Agreement 2009-2011. The Commission found that while the changes in industry circumstances were significant, they did not render the agreement no longer suitable for the parties. The Commission also considered the potential impact on employees if the agreement was terminated and held that it was not in the best interests of the employees or the industry to terminate the agreement at that time. The agreement remained suitable for the parties, and the application was dismissed.

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

DECISION

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