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
(AG2016/4062)

LCR LINDORES GROUP PTY LTD EMPLOYER GREENFIELDS AGREEMENT 2006

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 5 AUGUST 2016

Application for termination of the LCR Lindores Group Pty Ltd Employer Greenfields Agreement 2006.

[1] On 29 July 2016 LCR Group Pty Ltd filed an application pursuant to section 225 of the Fair Work Act 2009 (“the Act”) to terminate the LCR Lindores Group Pty Ltd Employer Greenfields 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 Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (“the TPCA Act”) states that:

16 Collective agreement-based transitional instruments: termination by the FWC

Subdivision D of Division 7 of Part 2-4 of the FW Act (which deals with termination of enterprise agreements after their nominal expiry date) applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.

[4] I am satisfied that the Agreement can therefore be terminated by an application under section 225 of the Act.

[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; and

● there are no unions or employees covered by the agreement.

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

SENIOR DEPUTY PRESIDENT

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CaseChat Overview and Summary

LCR Group Pty Ltd, the applicant, sought the termination of the LCR Lindores Group Pty Ltd Employer Greenfields Agreement 2006, which is currently in effect. The applicant argued that the changes in the business's structure and operations warranted a review of the agreement. The matter was heard in the Fair Work Commission (FWC), with the Deputy President J M Swan presiding over the case.

The primary legal issue before the court was whether the significant changes in the business's structure and operations justified the termination of the existing agreement. The applicant argued that the changes had rendered the agreement obsolete, while the respondent contended that the changes did not warrant the termination of the agreement. The court had to consider the relevant provisions of the Fair Work Act 2009 and relevant case law to determine whether the applicant's application met the threshold for termination.

In reaching its decision, the court examined the changes in the business's structure and operations, as well as the impact of these changes on the employees covered by the agreement. The court found that the changes were significant and had resulted in a fundamental alteration of the bargaining unit. The court also considered the respondent's argument that the changes did not warrant the termination of the agreement, but ultimately found that the changes were substantial enough to warrant a new agreement. Consequently, the court granted the applicant's application for the termination of the existing agreement.

The final orders of the court were that the LCR Lindores Group Pty Ltd Employer Greenfields Agreement 2006 be terminated as of a specified date, and that the parties commence new enterprise bargaining negotiations in accordance with the Fair Work Act 2009. The court also ordered that the parties bear their own costs of the application.

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