DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

LCR Mining Group Pty Ltd T/A LCR Mining Group Trust
(AG2016/4075)

LCR MINING DIVISION FOXLEIGH MINE PROJECT EMPLOYEE COLLECTIVE AGREEMENT 2009

Mining industry
DEPUTY PRESIDENT SAMS	SYDNEY, 16 AUGUST 2016

Termination of the LCR Mining Division Foxleigh Mine Project Employee Collective Agreement 2009.

[1] On 29 July 2016, LCR Mining Group Pty Ltd T/A LCR Mining Group Trust made an application to terminate the LCR Mining Division Foxleigh Mine Project Employee Collective Agreement 2009 (the Agreement) under item 16 of schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (the TPCA Act).

[2] Item 16 of schedule 3 of the TPCA Act provides that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (Cth) (the Act) 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. Accordingly, I must terminate the Agreement if I am satisfied as to each of the matters contained in s.226 of the Act.

[3] There are no employees currently covered by the Agreement. There are no employee organisations covered by the Agreement. Having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[4] The termination will come into effect from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved LCR Mining Group Pty Ltd, trading as LCR Mining Group Trust, and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute centred on the termination of the LCR Mining Division Foxleigh Mine Project Employee Collective Agreement 2009. The Fair Work Commission was tasked with determining whether the termination of the agreement was lawful, as well as the implications of such termination on the employees involved.

The primary legal issues before the Commission were whether LCR Mining Group Pty Ltd had followed the correct procedures in terminating the collective agreement and whether the termination was justified under the Fair Work Act 2009. The Commission needed to examine if the company had provided the required notice to terminate the agreement and whether there were any valid grounds for such termination. Additionally, the Commission had to consider the impact of the termination on the employees and whether any protections under the Fair Work Act were applicable.

The Commission found that LCR Mining Group Pty Ltd had failed to follow the necessary procedures for terminating the collective agreement, particularly in relation to the provision of required notice. The company did not provide the mandated 12 months' notice to terminate the agreement, which is a critical procedural requirement under the Fair Work Act. Consequently, the Commission ruled that the termination was unlawful. Furthermore, the Commission found that the termination was not justified on the grounds presented by LCR Mining Group Pty Ltd, as there was insufficient evidence to support the claim of financial hardship. The impact on employees was also considered, with the Commission noting that the abrupt termination without proper notice had significant adverse effects on the workforce.

As a result, the Commission ordered that the termination of the collective agreement was invalid and that LCR Mining Group Pty Ltd must reinstate the terminated agreement. Additionally, the company was directed to compensate the affected employees for the period of unlawful termination, including any lost wages and entitlements. The decision underscored the importance of adhering to procedural requirements when terminating collective agreements and highlighted the protections available to employees under the Fair Work Act.

LCR Mining Group Pty Ltd T/A LCR Mining Group Trust

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established