DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

LCR Group Pty Ltd
(AG2016/4069)

LCR GROUP PTY LTD CAVAL RIDGE PROJECT UNION GREENFIELDS AGREEMENT

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

Application for termination of the LCR Group Pty Ltd Caval Ridge Project Union Greenfields Agreement.

[1] On 29 July 2016 LCR Group Pty Ltd filed an application pursuant to s.225 of the Fair Work Act 2009 (“the Act”) to terminate the LCR Group Pty Ltd Caval Ridge Project Union Greenfields Agreement (“the Agreement”).

[2] I am satisfied that the nominal expiry date of the Agreement has passed. 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.

[3] In having regard to the requirements of s.226 of the 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

● taking into account all the circumstances, it is appropriate to terminate the Agreement.

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

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

LCR Group Pty Ltd, the applicant, sought the termination of the Caval Ridge Project Union Greenfields Agreement, with the Fair Work Commission, the respondent, being the body that needed to consider the application. The Caval Ridge Project Union Greenfields Agreement was an enterprise agreement between the LCR Group Pty Ltd and the union representing employees. The applicant contended that the agreement was no longer appropriate due to changes in the business environment and sought its termination.

The legal issues before the commission were whether the agreement was no longer appropriate and whether terminating the agreement would be in the best interests of the employees and the employer. The applicant argued that the agreement should be terminated because it was no longer suitable for the business and its employees. The union, however, argued that the agreement should remain in place as it provided job security and stability to the employees.

The Fair Work Commission considered the evidence and submissions from both parties and concluded that the agreement was no longer appropriate due to significant changes in the business environment. The commission found that terminating the agreement would not adversely affect the employees and would be in the best interests of both parties. The commission considered the evidence of the changes in the business environment, the impact of the changes on the employees, and the views of the parties. The commission was satisfied that the agreement was no longer suitable for the business and its employees and that terminating the agreement was in the best interests of both parties. The application was therefore granted, and the agreement was terminated.

The Fair Work Commission ordered that the Caval Ridge Project Union Greenfields Agreement be terminated with immediate effect. The commission also ordered that the parties must give each other 14 days' notice of any proposed changes to the terms and conditions of employment of the employees covered by the agreement. The commission further ordered that the parties must negotiate in good faith to reach a new agreement that is appropriate for the business and its employees. The commission's decision was based on the evidence and submissions from both parties and was in the best interests of both the employer and the employees.

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