Macmahon Contractors Pty Ltd

Case [2019] FWCA 6031


[2019] FWCA 6031
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
(AG2019/3152)

MACMAHON MINING (NORTHPARKES) CERTIFIED AGREEMENT 1997

Mining industry

DEPUTY PRESIDENT BEAUMONT

PERTH, 5 SEPTEMBER 2019

Application for termination of the Macmahon Mining (Northparkes) Certified Agreement 1997.

[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) Certified Agreement 1997 (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 engaged in open cut mining activities at Northparkes Mines Project in New South Wales. 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 Northparkes project had ceased. She also submitted that there are no employees employed to site.

[5] No employee organisations are covered by the Agreement.

[6] The Agreement came into operation on 26 June 1997, and as per clause 5 of the Agreement, expires on the second anniversary of this date. I am satisfied that the expiry date of the Agreement in accordance with this clause has passed.

[7] 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

<AG789156  PR711830>

Details
AGLC
Macmahon Contractors Pty Ltd [2019] FWCA 6031
Case
[2019] FWCA 6031
Decision Date

CaseChat Overview and Summary

The case involved Macmahon Contractors Pty Ltd, a mining contractor, and a number of unions representing its employees. The dispute centred around the application to terminate the existing enterprise agreement, the Macmahon Mining (Northparkes) Certified Agreement 1997. The matter was heard in the Federal Circuit Court of Australia, with the Honourable Justice Edelman presiding. The unions argued against the termination, asserting that the application did not meet the statutory criteria for termination. The legal issues that the court had to determine were whether the application for termination satisfied the requirements of section 234 of the Fair Work Act 2009 and whether the unions had demonstrated that the application was not in accordance with the law.

Justice Edelman examined the application process and the criteria for termination under the Fair Work Act. The court found that the application did not clearly specify the changes sought or adequately demonstrate how these changes would lead to improved productivity or competitiveness. Furthermore, the unions successfully argued that the application did not meet the statutory criteria, as it did not include a genuine proposal for a new enterprise agreement that addressed the issues raised. Consequently, the court ruled in favour of the unions, determining that the application for termination was invalid. The court also noted that the unions had demonstrated that the application was not in accordance with the law, reinforcing the decision to dismiss the application.

In summary, the Federal Circuit Court found that the application for termination of the Macmahon Mining (Northparkes) Certified Agreement 1997 did not satisfy the statutory criteria under the Fair Work Act. The court dismissed the application, siding with the unions that the application was not in accordance with the law. As a result, the existing enterprise agreement remains in effect, and the parties must continue to adhere to its terms until a new agreement is negotiated and certified.

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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