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
(AG2016/4063)

LCR LINDORES GROUP PTY LTD CFMEU ENTERPRISE AGREEMENT 2009 - 2011

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

Application for termination of the LCR Lindores Group Pty Ltd / CFMEU Enterprise Agreement 2009 - 2011.

[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 / CFMEU Enterprise Agreement 2009 - 2011 (“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

LCR Group Pty Ltd applied to the Fair Work Commission for the termination of the LCR Lindores Group Pty Ltd / CFMEU Enterprise Agreement 2009 - 2011. The application was based on a significant change in the bargaining environment, which had rendered the agreement out of date. The Commission was required to determine whether the application met the criteria for termination and if it was in the interests of the parties involved.

The primary legal issues the Commission needed to resolve were whether there had been a substantial change in the bargaining environment since the agreement was entered into and if this change had rendered the agreement obsolete. The Commission also needed to consider whether terminating the agreement would result in a better outcome for the parties and whether there were any other factors that should be taken into account.

In its decision, the Commission found that there had indeed been a substantial change in the bargaining environment since the agreement was made, particularly in terms of the economic conditions and the competitive landscape. The Commission concluded that these changes had rendered the agreement outdated and no longer fit for purpose. The Commission also found that terminating the agreement would be in the best interests of the parties, as it would allow for a more modern and relevant agreement to be negotiated. The Commission therefore granted the application for termination, allowing the parties to negotiate a new agreement that better reflects the current bargaining environment.

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