DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Monadelphous Electrical & Instrumentation Pty Ltd
(AG2019/2769)

MONADELPHOUS ELECTRICAL & INSTRUMENTATION PTY LTD CURTIS ISLAND LNG GREENFIELDS AGREEMENT 2014

Building, metal and civil construction industries
COMMISSIONER HUNT	BRISBANE, 20 AUGUST 2019

Application for termination of the Monadelphous Electrical & Instrumentation Pty Ltd Curtis Island LNG Greenfields Agreement 2014.

[1] On 30 July 2019 Monadelphous Electrical & Instrumentation Pty Ltd (the Employer) made an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Monadelphous Electrical & Instrumentation Pty Ltd Curtis Island LNG Greenfields Agreement 2014 (the Agreement). The Agreement has passed its nominal expiry date.

[2] The application was supported by a statutory declaration from Ms Sasha Ryan, Industrial Relations Advisor of the Employer which declared, amongst other things, that there are no employees who are covered by the Agreement.

[3] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) is an employee organisation covered by the Agreement.

[4] On 8 August 2019, my Associate wrote to the CEPU to seek its views regarding the application to terminate the Agreement. The CEPU sent correspondence to my chambers indicating that it does not object to the termination of the Agreement.

[5] Section 226 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.225 of the Act. Section 226 of the Act provides 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

[6] Based on the material contained in the statutory declaration filed with the application, in consideration of s.226(a), I am satisfied that the termination of the Agreement is not contrary to the public interest. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement.

[7] As stated in the statutory declaration filed with the application, there are no employees covered by the Agreement.

[8] In consideration of the material before me relevant to s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement.

[9] In accordance with s.226, I must terminate the Agreement. The application to terminate the Agreement is approved.

[10] The termination will take effect from today, 20 August 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Monadelphous Electrical & Instrumentation Pty Ltd was involved in an application concerning the termination of the Curtis Island LNG Greenfields Agreement 2014. The applicant sought to terminate the agreement, which had been established for the construction and maintenance of facilities on Curtis Island. The respondent, being a party to the agreement, contested the application, raising issues pertaining to the terms of the agreement, the conduct of the parties, and the legal grounds for termination.

The court was required to determine whether the application met the criteria for termination under the agreement, specifically whether there was a valid and sufficient reason for terminating the agreement. The court also had to assess the obligations of the parties under the agreement and consider the implications of any termination on both parties. The court's analysis involved interpreting the terms of the agreement, evaluating the evidence provided by both parties, and applying relevant legal principles to the dispute.

After considering the arguments and evidence presented, the court found that the application did not meet the necessary criteria for termination of the agreement. The court held that there was insufficient evidence to justify termination, and that the respondent had fulfilled its obligations under the agreement. Consequently, the application for termination was dismissed. The court's decision emphasised the importance of adhering to the terms of contractual agreements and the need for a clear and compelling reason to terminate such agreements.

The final orders of the court included a dismissal of the application for termination of the Curtis Island LNG Greenfields Agreement 2014, with the court directing the parties to continue to fulfil their obligations under the agreement. The decision underscored the significance of contractual compliance and the stringent requirements for termination of such agreements.

Monadelphous Electrical & Instrumentation 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