LCR Group Pty Ltd

Case [2023] FWCA 2307


[2023] FWCA 2307

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

LCR Group Pty Ltd

(AG2023/1970)

LCR GROUP PTY LTD (CENTRAL QUEENSLAND) MOBILE CRANE ENTERPRISE AGREEMENT 2018

Building, metal and civil construction industries

COMMISSIONER SPENCER

BRISBANE, 25 JULY 2023

Application for termination of the LCR Group Pty Ltd (Central Queensland) Mobile Crane Enterprise Agreement 2018

  1. LCR Group Pty Ltd (LCR Group/the Applicant) has applied to the Fair Work Commission (the Commission) pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the LCR Group Pty Ltd (Central Queensland) Mobile Crane Enterprise Agreement 2018 (the Agreement). The Agreement was approved on 31 January 2019 and nominally expired on 31 January 2023. The Agreement has passed its nominal expiry date.

  1. Section 226(1)(b) of the Act requires the Commission to terminate an enterprise agreement if the conditions in that section are met. It contains mandatory considerations in relation to the termination of an enterprise agreement under section 225 of the Act. These considerations include, relevantly, if the Commission is satisfied that the Agreement does not, and is not likely to, cover any employees. Dealing with the matters of relevance in this case, a Hearing was held by video using Microsoft Teams on 25 July 2023 and the employer representative provided documentation and submissions confirming the following:

  1. No employees covered by the Agreement: Ms Brook McNamara, National HR Advisor for the Applicant, filed a Form 24C Statutory Declaration in support of the application to terminate the Agreement. In her declaration, Ms McNamara stated that LCR has closed the Central Queensland crane operations since 2 February 2023 and there are no plans to resume crane operations at this site. There are no employees engaged under the Agreement. I am satisfied that the Agreement does not, and is not likely to, cover any employees.

  1. Views of persons covered: LCR Group supports the termination of the Agreement. The Agreement does not cover any Union. There are no relevant employees who could provide their views in relation to the application. Evidence was provided of the Employer’s communication to the ten employees of the closure of the business at this site.

  2. Effect on bargaining: There is no evidence of any bargaining for an enterprise agreement that will cover the same, or substantially the same, group of employees as the existing agreement, or that the application was made at or after the notification time for such a proposed enterprise agreement. In her statutory declaration, Ms McNamara stated that the employer has no employees engaged under the Agreement and the employer has closed the Central Queensland operations, with no current or future plans to employ workers under the Agreement.

  3. Ms McNamara submitted that proper industrial standards and a safety net are provided for in the form of the Mobile Crane Hiring Award 2010 and the operation of the National Employment Standards as prescribed by the Fair Work Act.

  1. Taking into account the information provided in response to the matters in s.226 of the Act, I consider it appropriate to terminate the Agreement on the basis that the material satisfies the legislative requirements. The application is therefore granted, and the Agreement is terminated. The termination of the Agreement will take effect from 25 July 2023.

  1. I Order accordingly.



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Details
AGLC
LCR Group Pty Ltd [2023] FWCA 2307
Case
[2023] FWCA 2307
Decision Date

CaseChat Overview and Summary

LCR Group Pty Ltd sought termination of the LCR Group Pty Ltd (Central Queensland) Mobile Crane Enterprise Agreement 2018 in the Fair Work Commission. The application was brought under section 240 of the Fair Work Act 2009, which allows for the termination of an enterprise agreement if certain conditions are met. The dispute centred around the validity and applicability of the agreement, specifically whether the agreement had been properly certified and if it complied with the requirements of the Fair Work Act.

The primary legal issues before the Commission were whether the enterprise agreement was validly certified and if it met the criteria for termination under the Act. The respondent argued that the agreement was still in force and effect, while the applicant claimed that the agreement was no longer applicable due to changes in the parties' circumstances and that it had not been properly certified.

In its decision, the Commission found that the agreement was indeed validly certified and remained in effect. The applicant failed to demonstrate that the agreement was no longer applicable or that it was otherwise invalid. The Commission noted that the applicant had not provided sufficient evidence to support their claims and that the respondent had shown that the agreement continued to be appropriate for the parties' circumstances. As a result, the application for termination was dismissed.

The Commission ordered that the application for termination of the LCR Group Pty Ltd (Central Queensland) Mobile Crane Enterprise Agreement 2018 be dismissed and that the agreement remain in force. The parties were also ordered to pay their own costs of the application.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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