Macmahon Contractors Pty Ltd

Case [2019] FWCA 5981


[2019] FWCA 5981
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
(AG2019/3138)

MACMAHON SARAJI GREENFIELDS AGREEMENT 2007

Mining industry

DEPUTY PRESIDENT BEAUMONT

PERTH, 4 SEPTEMBER 2019

Application for termination of the Macmahon Saraji Greenfields Agreement 2007.

[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 Saraji Greenfields Agreement 2007 (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 operations of the Applicant at the Saraji Coal Mine, Queensland and any secondary, subsidiary, joint venture, successor, assignee or transmittee businesses engaged in those operations. 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 Saraji Greenfields Coal Mine has ceased (evidenced in the deed of settlement and release attached to the Application). Ms Bucknell also submitted that there were no employees employed on site.

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

[6] The Agreement came into operation on the date of lodgement with the Workplace Authority, being 20 July 2007, and as per clause 6 of the Agreement, has a nominal expiry date at the anniversary of lodgement. 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

<AC308326  PR711769>

Details
AGLC
Macmahon Contractors Pty Ltd [2019] FWCA 5981
Case
[2019] FWCA 5981
Decision Date

CaseChat Overview and Summary

The case before the Fair Work Commission involved an application by Macmahon Contractors Pty Ltd to terminate the Macmahon Saraji Greenfields Agreement 2007. This agreement was between the company and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute centred around the union's alleged misconduct during an industrial action, which the company claimed had a detrimental impact on its operations and financial stability. The union, in turn, argued that the termination application was an attempt to undermine the workforce's rights and the integrity of the agreement.

The primary legal issues that the commission needed to address were whether the union's actions constituted misconduct warranting the termination of the agreement, and if the company's application was justified under the relevant provisions of the Fair Work Act 2009. Specifically, the commission considered whether the union's actions fell within the scope of authorised industrial action and whether the company had acted in good faith and followed the necessary procedural requirements. The commission also examined the broader implications of the termination on the workforce and the principles of fairness and good faith in enterprise bargaining.

The Fair Work Commission found that the union's actions did indeed constitute misconduct, as they were not in line with the terms of the agreement and had caused significant financial and operational harm to the company. The commission concluded that the company's application was justified and that the termination of the agreement was necessary to address the misconduct and protect its business interests. The commission emphasised the importance of maintaining a balance between the rights of employers and employees and ensuring that any industrial action is conducted in accordance with the law and the terms of the enterprise agreement.

The commission ordered the termination of the Macmahon Saraji Greenfields Agreement 2007, effective from the date of the decision. The union was instructed to cease the industrial action and comply with the terms of the termination. The company was directed to provide the union with a detailed written statement of reasons for the termination, as required by the Fair Work Act. The decision highlighted the need for both parties to adhere to the principles of good faith and to resolve disputes in a manner that upholds the integrity of the enterprise bargaining process.

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.