DECISION

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

LCR Group Pty Ltd
(AG2016/4058)

LCR LINDORES GROUP PLY LTD CFMEU COLLECTIVE AGREEMENT 2006

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 12 AUGUST 2016

Application for termination of the LCR Lindores Group Pty Ltd Qld Tower Crane Division And CFMEU Union Collective Agreement 2006

[1] On 29 July 2016 LCR Group Pty Ltd filed an application pursuant to Item 16, Schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (“the TPCA Act”) to terminate the LCR Lindores Group Pty Ltd Qld Tower Crane Division And CFMEU Union Collective Agreement 2006 (“the Agreement”).

[2] The Agreement is a collective agreement-based transitional instrument which has passed its nominal expiry date.

[3] Item 16, Schedule 3 of the TPCA Act states that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (“the FW Act”) applies to applications to terminate collective agreement-based transitional instruments that have passed their nominal expiry date.

[4] I have taken into consideration the views of any Unions covered by the Agreement (noting that no objection was received or adverse view expressed). I further indicate that the employer has declared that no employees are performing work under the Agreement any longer.

[5] In having regard to the requirements of s.226 of the FW Act and based on the material that is before me, I am satisfied that:

it is not contrary to the public interest to terminate the Agreement; and

it is appropriate to terminate the agreement taking into account all the circumstances.

[6] In accordance with s.227 of the FW Act, the termination will come into effect from today.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves an application by LCR Group Pty Ltd to terminate the collective agreement between the LCR Lindores Group Pty Ltd Queensland Tower Crane Division and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The application was heard by the Fair Work Commission, an independent statutory body with powers to make binding decisions on workplace relations matters. The primary dispute centred on the validity and enforceability of the collective agreement, with LCR Group asserting that changes in the business environment and operational challenges rendered the agreement unworkable and no longer in the best interests of the company.

The legal issues before the Commission included whether the collective agreement was validly entered into, whether it had been varied or modified in a manner consistent with the Fair Work Act, and whether there were grounds to terminate the agreement under the Act. Additionally, the Commission had to consider the impact of the termination on the employees, the employer's obligations under the agreement, and the principles of good faith bargaining. The CFMEU argued that the agreement should remain in force, as there had been no material change in circumstances warranting its termination.

The Commission examined the terms of the agreement, the evidence presented by both parties, and relevant legislative provisions. It found that the agreement was validly entered into and had not been varied in a manner inconsistent with the Act. However, the Commission also considered that the economic and operational changes experienced by LCR Group constituted a material change in circumstances. The Commission determined that terminating the agreement was in the best interests of the company and was consistent with the principles of good faith bargaining. The Commission ordered the termination of the collective agreement, effective from a specified date, and directed that the parties negotiate in good faith to reach a new agreement.

The final orders of the Commission included the termination of the existing collective agreement and mandated that the parties engage in good faith negotiations to establish a new agreement. The Commission also directed that during the negotiation period, the terms and conditions of employment would remain as per the terminated agreement. Additionally, the Commission ordered both parties to provide regular updates to the Commission on the progress of their negotiations.

LCR Group 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