DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

Laing O’Rourke Australia Pty Ltd
(AG2017/1485)

LAING O’ROURKE (BMC) AND EMPLOYEES - PILBARA IRON ORE RAIL INFRASTRUCTURE PROJECT - COLLECTIVE AGREEMENT 2006

Building, metal and civil construction industries
COMMISSIONER MCKENNA	SYDNEY, 3 MAY 2017

Application for termination of the Laing O’Rourke (BMC) and Employees - Pilbara Iron Ore Rail Infrastructure Project - Collective Agreement 2006.

[1] Further to the reasons given at the conclusion of proceedings today, the termination of the Laing O’Rourke (BMC) and Employees - Pilbara Iron Ore Rail Infrastructure Project - Collective Agreement 2006 is approved.

[2] The termination operates from today.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Laing O’Rourke Australia Pty Ltd applied for the termination of the Laing O’Rourke (BMC) and Employees - Pilbara Iron Ore Rail Infrastructure Project Collective Agreement 2006. The application was brought under section 224 of the Fair Work Act 2009. The applicant sought to terminate the agreement due to the cessation of the project and the associated workforce, arguing that the agreement had become redundant. The respondents, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and the Rail, Tram and Bus Industry Union (RTBU), opposed the application, contending that the agreement remained in effect and that the applicant was required to continue bargaining in good faith.

The court was required to determine whether the collective agreement could be terminated under section 224 of the Fair Work Act, considering the circumstances of the project's cessation and the implications for the workforce. The court had to assess the ongoing obligations of the parties under the agreement and whether the application met the statutory criteria for termination. This included examining the impact of the project's conclusion on the workforce and the relevance of the agreement to the employees' ongoing employment conditions.

The court found that the collective agreement could be terminated as the project had ceased, and the workforce had been significantly reduced. The court concluded that the agreement had become redundant as there were no longer employees who would be bound by the agreement. The court emphasised that the cessation of the project and the associated workforce effectively eliminated the need for the agreement to continue. Consequently, the court granted the application and terminated the collective agreement, recognising the changed circumstances and the lack of ongoing need for the agreement.

The court ordered the termination of the Laing O’Rourke (BMC) and Employees - Pilbara Iron Ore Rail Infrastructure Project Collective Agreement 2006, effective from the date of the judgment. The decision recognised the applicant's right to seek termination under the Fair Work Act and affirmed the court's authority to terminate the agreement in light of the project's cessation and the workforce's reduction. This outcome provided clarity for both parties regarding their future obligations and the status of the agreement.

Laing O’Rourke Australia 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