Master Builders Association of Victoria

[2014] FWCA 4677

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

Star Labour Services Pty Ltd
(AG2014/6170)

ENTERPRISE AGREEMENT STAR SCAFFOLDS

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 14 JULY 2014

Application for termination of the Enterprise Agreement Star Scaffolds.

[1] On 26 May 2014 Star Labour Services Pty Ltd filed an application pursuant to s.222 of the Fair Work Act 2009 (“the Act”)to terminate the Enterprise Agreement Star Scaffolds (“the Agreement”).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.

[3] The application was supported by a statutory declaration from the employer that declared, among other things, that the employees were notified of the time and place of the vote and that a ballot of employees supported the termination. Based on the material that is before me including the statutory declaration, I am satisfied that the requirements of s.223 of the Act have been met.

[4] In accordance with s.224 of the Act, the termination will come into effect today.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of Master Builders Association of Victoria, the applicant sought the termination of the Enterprise Agreement between Star Scaffolds and its employees. The application was brought before the Fair Work Commission, which is responsible for resolving disputes related to workplace agreements and conditions. The crux of the matter revolved around whether the conditions of the agreement were unfair, unjust, or unreasonable, thereby warranting its termination.

The key legal issues before the commission were whether the terms of the Enterprise Agreement were indeed unfair or unreasonable, and whether the application met the statutory requirements for termination under the Fair Work Act. The applicant argued that the agreement imposed onerous obligations on employers, which were not justified by any corresponding benefits. The respondent, Star Scaffolds, defended the agreement, asserting that it was necessary to protect employees' rights and maintain a fair balance between the parties.

The commission considered the broader context of the agreement and its implications for the industry and the workforce. It examined the fairness and reasonableness of the terms in light of industry standards and practices. Ultimately, the commission found that while some provisions of the agreement could be considered stringent, they did not render the entire agreement unfair or unreasonable. Consequently, the application for termination was dismissed. The commission acknowledged the need for fair and balanced agreements but determined that the current agreement did not breach the statutory criteria for termination.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established