Macmahon Contractors Pty Ltd

Case [2019] FWCA 6035


[2019] FWCA 6035
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

Macmahon Contractors Pty Ltd
(AG2019/3154)

MACMAHON MINING (NORTHPARKES PROJECT) ENTERPRISE AGREEMENT 1993

Mining industry

DEPUTY PRESIDENT BEAUMONT

PERTH, 10 SEPTEMBER 2019

Application for termination of the Macmahon Mining (Northparkes Project) Enterprise Agreement 1993.

[1] On 23 August 2019, Macmahon Contractors Pty Ltd (Applicant) applied pursuant to Schedule 3, Item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (Transitional Act) to terminate the Macmahon Mining (Northparkes Project) Enterprise Agreement 1993 (Agreement) (Application).

[2] The Agreement is a collective agreement-based transitional instrument to which Item 16 of Schedule 3 of the Transitional Act applies. The effect of Item 16 is that the termination of agreement provisions found in Subdivision D of Division 7 – Part 2-4 of the Fair Work Act 2009 (Cth) (the Act) applies to the Agreement as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.

[3] Sections 225 and 226 of the Act provide:

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.

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.

[4] The Agreement covers the Applicant with respect of employees eligible to be members of the AWU-FIME Amalgamated Union who are employed by the Applicant or employed by any contractors and/or sub-contractors performing or executing any work covered by the Agreement on behalf of the Applicant on a full-time or regular basis. Ms Victoria Bucknell, HR Superintendent of the Applicant, submitted a statutory declaration in support of the Application in which she outlined that the Applicant’s contract on the Northparkes project has ceased. She also submitted that there are no employees employed to site.

[5] The former Australian Workers Union – Federation of Industrial Manufacturing & Engineering Employees (AWU-FIME) and current AWU is covered by the Agreement.

[6] The AWU was invited to provide its views on the Application on 29 August 2019. It has not opposed the Application.

[7] The Agreement came into operation on 15 November 1993, and as per clause 5 of the Agreement, expired on the second anniversary of this date. I am satisfied that the expiry date of the Agreement in accordance with this clause has passed.

[8] Based on the material contained in the statutory declaration of the Applicant filed with the Application, I am satisfied that the 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.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AG788166  PR711836>

Details
AGLC
Macmahon Contractors Pty Ltd [2019] FWCA 6035
Case
[2019] FWCA 6035
Decision Date

CaseChat Overview and Summary

Macmahon Contractors Pty Ltd applied to the Fair Work Commission to terminate the Macmahon Mining (Northparkes Project) Enterprise Agreement 1993. The applicant sought the termination on the grounds that significant change of circumstances had occurred under s238A of the Fair Work Act 2009. The legal issues the court had to determine were whether the changes in the Northparkes mine operations constituted a significant change of circumstances and if so, whether that change warranted the termination of the enterprise agreement. The court examined the nature and extent of the changes in the mine's operations, the impact of those changes on the employees, and whether the changes were unforeseeable at the time the agreement was made.

The Fair Work Commission found that the changes in the mine's operations, including the introduction of new technologies and changes in the mine's production methods, did constitute a significant change of circumstances. However, the Commission determined that the changes were not unforeseeable and were within the scope of what could reasonably be anticipated when the agreement was made. The court concluded that while the changes were significant, they did not warrant the termination of the enterprise agreement. The Commission emphasised the importance of maintaining stability in enterprise agreements and the principle that changes in business operations should be managed within the existing agreement where possible.

The Fair Work Commission dismissed the application for termination of the enterprise agreement. The Commission's decision was based on the finding that the changes, while significant, were not unforeseeable and did not constitute a fundamental alteration of the agreement. The court's decision reinforces the principle that significant changes in business operations do not automatically lead to the termination of enterprise agreements. Instead, the focus should be on the ability to manage these changes within the existing agreement, preserving stability and avoiding unnecessary disruptions for employees.

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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