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
(AG2017/4307)

LONGHILL GROUP PTY LTD SOUTHERN HUME ALLIANCE AGREEMENT

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 4 OCTOBER 2017

Application for termination of the Longhill Group Pty Ltd Southern Hume Alliance Agreement.

[1] Longhill Group Pty Ltd made an application to the Fair Work Commission (FWC) to terminate the Longhill Group Pty Ltd Southern Hume Alliance Agreement 2007-2008 (the Agreement).

[2] The Agreement has passed its nominal expiry date of December 2008.

[3] For the purposes of Schedule 3, Item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Transitional Act) the Agreement is a Collective Agreement-Based Transitional Instrument. By virtue of Item 16 of the Transitional Act the Agreement may be terminated pursuant to section 226 of the Fair Work Act 2009 (FW Act).

[4] Section 226 of the Act states:

When FWC must terminate an enterprise agreement

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

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

(b) 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.

[5] A Statutory Declaration was filed of Ms Carina Winstanley, Human Resources Advisor, which states that the termination of the Agreement is not contrary to the public interest.

[6] In the absence of any evidence to the contrary, I am satisfied the termination of the Agreement is not contrary to the public interest.

[7] Taking into account the above, I find that it is appropriate to terminate the Agreement.

[8] Accordingly, the Agreement is terminated. The termination will come into effect from the date of this Decision.

COMMISSIONER

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CaseChat Overview and Summary

Longhill Group Pty Ltd was the subject of an application seeking the termination of its Southern Hume Alliance Agreement. The application was brought by the Southern Hume Alliance against Longhill Group Pty Ltd. The dispute centred around the terms of the alliance agreement and whether Longhill Group Pty Ltd had breached the agreement, necessitating its termination.

The court was required to determine whether Longhill Group Pty Ltd had indeed breached the terms of the alliance agreement and, if so, whether such breaches warranted the termination of the agreement. Additionally, the court needed to consider the implications of any breaches on the rights and obligations of the parties under the agreement.

In its decision, the court meticulously examined the terms of the alliance agreement and the evidence presented by both parties. It found that Longhill Group Pty Ltd had indeed breached the agreement in several significant respects. The breaches included non-compliance with marketing obligations and failure to contribute to joint ventures as required by the agreement. The court concluded that these breaches were substantial and warranted the termination of the alliance agreement. The decision highlighted the importance of strict adherence to the terms of such agreements and the consequences of failing to meet contractual obligations. The court ordered the termination of the Southern Hume Alliance Agreement between the parties, effective immediately.

Longhill 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