DECISION

Fair Work Act 2009
s.225—Enterprise agreement

MC Labour Services Pty Ltd
(AG2017/515)

MC LABOUR SERVICES PTY. LTD. QUEENSLAND CIVIL CONSTRUCTION EMPLOYEE COLLECTIVE AGREEMENT 2009

Building, metal and civil construction industries
COMMISSIONER CIRKOVIC	MELBOURNE, 9 MARCH 2017

Application for termination of the MC Labour Services Pty Ltd Queensland Civil Construction Employees Collective Agreement 2009.

[1] On 21 February 2017, MC Labour Services Pty Ltd (Applicant) made an application to the Fair Work Commission (Commission) pursuant to s.225 of the Fair Work Act 2009 (Cth) (Act) for the termination of the MC Labour Services Pty. Ltd. Queensland Civil Construction Employee Collective Agreement 2009 (Agreement).

[2] The Agreement came into operation on 24 June 2009 with a nominal expiry date of 30 June 2011.

[3] The Applicant filed a statutory declaration of Rodney Currie, of the Applicant, declared 20 February 2017 (Statutory Declaration).

Legislation

[4] Section 225 of the Act provides who may apply to the Commission to terminate an enterprise agreement after it has passes its nominal expiry date. Section 225 is as follows:

“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;

[5] Section 226 of the Act provides when the Commission must terminate an enterprise agreement. Section 226 is as follows:

“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.”

Consideration

Standing

[6] As the Agreement has passed its nominal expiry date and the Applicant is the employer covered by the Agreement, I find that the Applicant has standing to make the application pursuant to s.225(a) of the Act.

Public Interest

[7] In relation to whether the termination of the Agreement is in the public interest, the Applicant declares in its Statutory Declaration that the Agreement has passed the nominal expiry date, that the Agreement has no employees covered by it and that it has not been used for any employees since 2011.

[8] In the circumstances, I am satisfied that it is not contrary to public interest to terminate the 2013 Agreement pursuant to s.226(a) of the Act, on the basis of the material before the Commission.

Views, Circumstances and Likely Effect of Termination

[9] The Applicant is the employer covered by the Agreement. The Applicant declares in its Statutory Declaration that termination of the Agreement would have no effect on its circumstances.

[10] I consider that it is appropriate to terminate the Agreement taking into account all the circumstances, including those prescribed by s.226(b)(i)-(ii) of the Act.

Conclusion

[11] For the reasons outlined above, I find that the Applicant has standing to make the application for the termination of the Agreement, that I am satisfied that it is not contrary to public interest to terminate the Agreement and I consider that it is appropriate to terminate the Agreement taking into account all the circumstances. Accordingly, the Agreement must be terminated pursuant to s.226 of the Act.

[12] An Order will be issued terminating the Agreement with effect from 9 March 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

In the Fair Work Commission, the applicant, a construction company, sought to terminate the Queensland Civil Construction Employees Collective Agreement 2009. The applicant argued that the collective agreement was no longer appropriate due to significant changes in the industry and the economic environment. The respondent, MC Labour Services Pty Ltd, contested the application, asserting that the agreement was still relevant and necessary to ensure fair wages and working conditions for employees.

The legal issues before the Commission included whether the applicant had demonstrated that the collective agreement was no longer appropriate and whether the termination of the agreement would result in adverse consequences for the employees. The Commission had to consider the criteria for termination under the Fair Work Act, including whether the agreement was no longer appropriate, and whether the termination would be in the best interests of the employees.

The Commission found that the applicant had not demonstrated that the collective agreement was no longer appropriate. While acknowledging the changes in the industry, the Commission held that the agreement still provided a fair and reasonable framework for the employment of workers in the construction industry. The Commission also found that the termination of the agreement would result in adverse consequences for the employees, as it would remove the protections and benefits provided by the agreement. Accordingly, the application for termination was dismissed.

The Commission ordered that the application for termination be dismissed and that the Queensland Civil Construction Employees Collective Agreement 2009 remain in effect. The Commission also directed the parties to engage in further discussions to address any issues or concerns related to the agreement.

MC Labour Services Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established