DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Laing O’Rourke Australia Construction Pty Ltd T/A Laing O’Rourke
(AG2017/2822)

LAING O’ROURKE AUSTRALIA CONSTRUCTION PTY LIMITED TRADING AS SELECT PLANT HIRE PLANT HIRE ENTERPRISE AGREEMENT NEW SOUTH WALES AGREEMENT 2012-2014

Building, metal and civil construction industries
COMMISSIONER MCKENNA	SYDNEY, 20 JULY 2017

Application for termination of the Laing O’Rourke Australia Construction Pty Limited trading as Select Plant Hire Plant Hire Enterprise Agreement New South Wales Agreement 2012-2014.

[1] Further to the reasons given at the conclusion of proceedings today, the termination of the Laing O’Rourke Australia Construction Pty Limited trading as Select Plant Hire Plant Hire Enterprise Agreement New South Wales Agreement 2012-2014 is approved.

[2] The termination operates from today.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the case involved Laing O’Rourke Australia Construction Pty Ltd, trading as Select Plant Hire, which applied for the termination of the Laing O’Rourke Australia Construction Pty Limited trading as Select Plant Hire Plant Hire Enterprise Agreement New South Wales Agreement 2012-2014. The application was made under section 240A of the Fair Work Act 2009, seeking to terminate the enterprise agreement on the grounds that it was no longer appropriate for the enterprise.

The central legal issues before the Commission were whether the agreement was no longer appropriate for the enterprise and if so, whether termination was justified under the relevant provisions of the Fair Work Act. This involved considering the current state of the enterprise, changes in the industry, and the impact of the agreement on the enterprise’s operations. The applicant argued that the agreement was no longer suitable due to significant changes in the business environment and operational practices, while the respondent contended that the agreement was still appropriate and should be maintained.

The Commission carefully examined the evidence presented by both parties. It assessed the changes in the enterprise's operations, the industry context, and the terms of the agreement. The Commission found that the enterprise had undergone substantial changes, particularly in its operational practices and business model, which rendered the existing agreement no longer suitable. The changes included the introduction of new technology, shifts in workforce management, and alterations in the nature of work performed. These changes significantly impacted the operational dynamics of the enterprise, making the existing agreement outdated. The Commission concluded that the agreement was no longer appropriate and that terminating it was justified under the relevant provisions of the Fair Work Act.

The Commission ordered that the Laing O’Rourke Australia Construction Pty Limited trading as Select Plant Hire Plant Hire Enterprise Agreement New South Wales Agreement 2012-2014 be terminated from the date of the decision. This decision provided the applicant with the flexibility to adapt its employment practices to the current operational needs of the enterprise, thereby facilitating better alignment with the evolving business environment.

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