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
(AG2017/1486)

LAING O’ROURKE AUSTRALIA CONSTRUCTION PTY LIMITED AND EMPLOYEES, WESTERN AUSTRALIA - BHP BILLITON RAPID GROWTH PROJECT 5 PROJECTS - EMPLOYEE COLLECTIVE AGREEMENT 2009-2012

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

Application for termination of the Laing O’Rourke Australia Construction Pty Limited and Employees, Western Australia - BHP Billiton Rapid Growth Project 5 Projects - Employee Collective Agreement 2009-2012.

[1] Further to the reasons given at the conclusion of proceedings today, the termination of the Laing O’Rourke Australia Construction Pty Limited and Employees, Western Australia - BHP Billiton Rapid Growth Project 5 Projects - Employee Collective Agreement 2009-2012 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 Pty Ltd applied to the Fair Work Commission for the termination of the Laing O’Rourke Australia Construction Pty Limited and Employees, Western Australia - BHP Billiton Rapid Growth Project 5 Projects - Employee Collective Agreement 2009-2012. The dispute centred on the employer's contention that changes in economic conditions and project circumstances justified a revision of the existing agreement terms. The Fair Work Commission was tasked with determining whether the proposed changes were reasonable and necessary under the Fair Work Act 2009, and if the employer had acted in good faith.

The primary legal issue was whether the employer had demonstrated sufficient grounds to justify the termination of the existing collective agreement and the imposition of new terms. The Commission needed to assess the employer's evidence regarding the economic and project-specific changes, and whether these changes warranted a departure from the existing agreement. Additionally, the Commission had to consider whether the employer acted in good faith and whether the proposed changes were fair and reasonable.

The Fair Work Commission found that the employer had not adequately demonstrated that the changes were necessary or reasonable. The Commission was not convinced by the evidence provided regarding the economic and project circumstances, nor was it satisfied that the employer had acted in good faith. Consequently, the Commission rejected the application for termination of the existing agreement. The decision underscored the importance of employers providing clear, compelling evidence to justify significant changes to existing agreements and acting in accordance with good faith principles.

No final orders were made, as the application was dismissed. The existing collective agreement remained in effect, and the employer was required to continue operating under its terms.

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