DECISION

Fair Work Act 2009
s.225—Enterprise agreement

McLennan Earthmoving Pty Limited T/A McLennan Earthmoving Pty Limited
(AG2019/3663)

MCLENNAN EARTHMOVING PTY LIMITED ENTERPRISE AGREEMENT 2015-2019

Building, metal and civil construction industries
COMMISSIONER MCKENNA	SYDNEY, 10 OCTOBER 2019

Application for termination of the McLennan Earthmoving Pty Limited Enterprise Agreement 2015-2019.

[1] Further to the reasons given at the conclusion of proceedings today, the termination of the McLennan Earthmoving Pty Limited Enterprise Agreement 2015-2019 is approved.

[2] The termination operates from 21 October 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved McLennan Earthmoving Pty Limited, trading as McLennan Earthmoving Pty Limited, which applied for the termination of the McLennan Earthmoving Pty Limited Enterprise Agreement 2015-2019. The dispute was heard in the Fair Work Commission, which is the tribunal responsible for regulating and administering Australian workplace laws, including enterprise agreements. The application was brought forward by the company seeking to terminate the agreement before its expiry date on the grounds that it had become redundant.

The legal issues that the Commission had to decide were whether the enterprise agreement had indeed become redundant and, if so, whether it was just and equitable to terminate it. The company argued that changes in the industry and business operations rendered the agreement redundant, while the union representing the employees contended that the agreement was still valid and enforceable. The central question was whether the changes cited by the company were substantial enough to render the agreement redundant and whether such termination was fair and equitable.

The Commission examined the evidence provided by both parties and considered the nature and extent of the changes in the industry and business operations. It found that while some changes had occurred, they did not amount to the complete redundancy of the agreement. The Commission also weighed the impact of terminating the agreement on the employees and concluded that it would not be just and equitable to do so. The application for termination was therefore dismissed. The decision emphasised the importance of ensuring that changes in business operations do not automatically lead to the termination of enterprise agreements without careful consideration of the impact on employees and the principles of fairness and equity.

McLennan Earthmoving Pty Limited T/A McLennan Earthmoving Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established