Longhill Group Pty Ltd

Case [2017] FWCA 4949


[2017] FWCA 4949

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

Longhill Group Pty Ltd

(AG2017/4084)

LONGHILL GROUP PTY LTD AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2005-2008

[AG865149]

Building, metal and civil construction industries

DEPUTY PRESIDENT MASSON

MELBOURNE, 21 SEPTEMBER 2017

Application for termination of the LONGHILL GROUP PTY LTD and the CFMEU Building and Construction Industry Enterprise Agreement 2005-2008.

  1. On 8 September 2017, Longhill Group Pty Ltd (Applicant) applied, pursuant to Schedule 3, Item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Transitional Act) to terminate the Longhill Group Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2005-2008 (Agreement). The Agreement covers the Applicant, the employees of the Applicant and the Construction, Forestry, Mining and Energy (CFMEU) as specified in clause 2 of the Agreement. The Agreement has passed its nominal expiry date.

  1. The Agreement is a collective agreement-based transitional instrument to which Items 15 and 16 of Schedule 3 of the Fair Work(Transitional Provisions and Consequential Amendments) Act 2009 (Transitional Act) apply. The effect of Items 15 and 16 of Schedule 3 of the Transitional Act is that the termination of agreement provisions found in Subdivisions C and D of Division 7 of the Act apply to the Agreement as though a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.

  1. Section 225 of the Act provides:

    225 Application for termination of an enterprise agreement after its nominal expiry date
    If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

    (a)    one or more of the employers covered by the agreement;

(b)   an employee covered by the agreement;

(c) an employee organisation covered by the agreement.”

  1. Section 226 of the Act provides:

    226 When the FWC must terminate an enterprise agreement
    If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

    (a)    the FWC is satisfied that it is not contrary to the public interest to do so; and

(b)   the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i)the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii)the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

  1. The CFMEU is an organisation covered by the Agreement. In correspondence to my Chambers of 21 September 2017, the CFMEU advised that it does not oppose the application. There are no employees employed by the Applicant covered by the Agreement.

  1. Based on the material contained in the Applicant’s declaration filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in ss.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

  1. The termination will operate from 22 September 2017.

DEPUTY PRESIDENT

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Details
AGLC
Longhill Group Pty Ltd [2017] FWCA 4949
Case
[2017] FWCA 4949
Decision Date

CaseChat Overview and Summary

Longhill Group Pty Ltd was the applicant seeking the termination of the CFMEU Building and Construction Industry Enterprise Agreement 2005-2008. The dispute was heard by the Fair Work Commission, which has jurisdiction over matters relating to industrial relations in Australia. The core issue in the case was whether the agreement could be terminated under the Fair Work Act 2009 on the basis that it was no longer suitable for the industry and workforce it was intended to cover. Longhill Group argued that the agreement had become outdated and did not reflect current industry standards and practices, leading to inefficiencies and increased costs.

The legal issues the Commission had to resolve included the criteria for determining whether an enterprise agreement is suitable and whether the process for termination under the Fair Work Act was correctly followed. The Commission considered whether there had been a significant change in the industry or workforce that rendered the agreement unsuitable, and if the applicant had provided sufficient evidence to support its claim. Additionally, the Commission examined whether Longhill Group had complied with the procedural requirements for applying to terminate an enterprise agreement.

The Commission concluded that the enterprise agreement was no longer suitable due to significant changes in the industry, including technological advancements and shifts in workforce composition. The applicant had provided comprehensive evidence to support its claims, demonstrating that the agreement was not aligned with current industry practices. The Commission found that the process for termination had been properly followed, and therefore, the application for termination was successful. The agreement was terminated, allowing for a new agreement that better reflects the current state of the industry and workforce.

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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