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
(AG2016/4068)

LCR LINDORES GROUP PTY LTD / CFMEU ENTERPISE AGREEMENT EXPIRING 31 MARCH 2008

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 Enterpise Agreement expiring 31 March 2008.

[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 Enterpise Agreement expiring 31 March 2008 (“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 terminate the LCR Lindores Group Pty Ltd and CFMEU Enterprise Agreement, which was due to expire on 31 March 2008. The application was heard in the Fair Work Commission, with Deputy President R D Griggs presiding over the matter. The primary dispute revolved around whether the conditions outlined in the Fair Work Act 2009 allowed for the termination of the enterprise agreement prior to its expiration date.

The legal issues at the centre of the decision involved interpreting the provisions of the Fair Work Act and determining if there were substantial changes in the circumstances of the parties that warranted a termination of the enterprise agreement. The key considerations included the criteria for termination under section 241 of the Act and whether such termination would result in a less favourable outcome for employees.

In examining these issues, the Fair Work Commission found that the applicant, LCR Group Pty Ltd, had not demonstrated a substantial change in circumstances warranting termination of the enterprise agreement. The Commission noted that the applicant had not provided sufficient evidence to support its claim that the agreement was no longer fit for purpose due to significant changes in the business environment or operational conditions. Consequently, the application for termination was dismissed, and the enterprise agreement remained in effect until its scheduled expiration. The decision underscored the importance of demonstrating a clear and compelling case for termination under the Fair Work Act.

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