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
(AG2016/4066)

LCR LINDORES GROUP PTY LTD & CFMEU UNION COLLECTIVE AGREEMENT 2008-2011

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

Application for termination of the LCR Lindores Group Pty Ltd and CFMEU union collective agreement 2008 - 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 and CFMEU union collective agreement 2008 - 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 recently appeared before the Fair Work Commission in an application seeking the termination of the collective agreement that had been entered into between the company and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) for the period 2008-2011. The company argued that the union had failed to comply with certain provisions of the Fair Work Act 2009, which had rendered the agreement invalid. The dispute centred on whether the union's conduct had breached the terms of the agreement and, if so, whether this justified terminating the collective agreement.

The primary legal issue before the Commission was whether the union's conduct amounted to a breach of the agreement. The Commission was required to consider whether the union had acted in a manner inconsistent with its obligations under the Fair Work Act and the collective agreement. Specifically, the Commission had to determine whether the union's actions had frustrated the purposes of the agreement or had prevented or hindered the agreement's operation.

The Commission found that the union had breached the collective agreement by failing to provide the company with information and documentation required under the agreement. The union's conduct had hindered the agreement's operation, thereby justifying termination. The Commission held that the union's failure to comply with its obligations under the agreement and the Fair Work Act warranted the termination of the collective agreement. As a result, the Commission granted the company's application and terminated the collective agreement. The Commission's decision underscores the importance of unions adhering to the terms of collective agreements and the potential consequences of failing to do so.

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