| [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>
- AGLC
- Macmahon Contractors Pty Ltd [2019] FWCA 6035
- Case
- [2019] FWCA 6035
- Decision Date
CaseChat Overview and Summary
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
Full text does not contain this section.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.