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
(AG2016/4064)

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 CFMEU 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 CFMEU 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

LCR Group Pty Ltd sought to terminate the LCR Lindores Group Pty Ltd CFMEU collective agreement 2006. The case was heard in the Fair Work Commission, where the applicant argued that the agreement had become redundant due to significant changes in the workforce and business operations. The CFMEU opposed the application, asserting that the changes did not warrant the termination of the agreement and that the workers' rights were protected under the existing terms.

The central legal issues before the Commission were whether the changes in the workforce and operations were substantial enough to render the collective agreement redundant, and if not, whether the agreement should be amended to reflect the new circumstances. The Commission had to consider the principles of redundancy and the continuity of employment, as well as the implications for the employees' rights under the Fair Work Act 2009.

The Commission determined that the changes, while significant, did not render the collective agreement completely obsolete. However, the Commission found that some aspects of the agreement were outdated and needed to be revised to accommodate the new business structure. The agreement was therefore terminated in part and amended in part, ensuring that the employees' rights were protected and aligned with the current business operations. The decision balanced the need for flexibility in business operations with the protection of employees' rights under the collective agreement.

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