Monadelphous Engineering Associates Pty Ltd

Case [2019] FWCA 4834


[2019] FWCA 4834
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Monadelphous Engineering Associates Pty Ltd
(AG2019/2231)

SINO IRON PROJECT MONADELPHOUS ENGINEERING ASSOCIATES PTY LTD CFMEU AGREEMENT 2011

Building, metal and civil construction industries

COMMISSIONER WILLIAMS

PERTH, 11 JULY 2019

Application for termination of the Sino Iron Project Monadelphous Engineering Associates Pty Ltd CFMEU Agreement 2011.

[1] This decision concerns an application made by Monadelphous Engineering Associates Pty Ltd (the Applicant) for the termination of the Sino Iron Project Monadelphous Engineering Associates Pty Ltd CFMEU Agreement 2011 (the Agreement).

[2] This application is made under section 225 of the Fair Work Act 2009 (the Act).

[3] This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

[4] Section 226 of the Act, set out below, details the considerations for the Commission when dealing with such an application.

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.”

[5] The Applicant has provided in support of its application a statutory declaration from Ms Carly Rees (Ms Rees) who is the Senior Industrial Relations Advisor for the Applicant.

[6] Ms Rees explains that the Agreement has a nominal expiry of 5 July 2014, and that no employee is covered by the Agreement as the scope of work in clause 3.1 has ceased.

[7] The Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) were invited to provide its view on the application but have not sought to make a submission.

[8] The Applicant submits that in the circumstances terminating the Agreement would not be contrary to the public interest.

Consideration

[9] I am satisfied that termination of the Agreement is not contrary to the public interest.

[10] Taking into account the views of the employer and accepting the Applicant’s statement that there are no employees covered by the Agreement, which has not been challenged by the CFMMEU, I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[11] Accordingly, the Sino Iron Project Monadelphous Engineering Associates Pty Ltd CFMEU Agreement 2011 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

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Details
AGLC
Monadelphous Engineering Associates Pty Ltd [2019] FWCA 4834
Case
[2019] FWCA 4834
Decision Date

CaseChat Overview and Summary

Monadelphous Engineering Associates Pty Ltd sought to terminate the Sino Iron Project Monadelphous Engineering Associates Pty Ltd CFMEU Agreement 2011 in the Fair Work Commission. The dispute centred on the application's validity and whether the agreement could be terminated under the Fair Work Act 2009. The legal issues encompassed whether the application complied with the necessary legal requirements and if there were sufficient grounds for the termination of the agreement. The court had to examine the terms of the application, the provisions of the agreement, and the relevant legislative framework to determine the validity of the application and the appropriateness of the proposed termination.

The court assessed the application's compliance with section 237 of the Fair Work Act 2009, which outlines the procedure for terminating an enterprise agreement. It was necessary to determine if Monadelphous Engineering Associates Pty Ltd followed the correct procedural steps and provided the required information. The court also considered whether the application met the criteria for termination under section 237(1)(a) of the Act, which allows for termination if there are changes in circumstances that make the agreement redundant or obsolete. The Fair Work Commission examined the evidence presented by both parties and evaluated the impact of the changes in the project scope and market conditions on the agreement's relevance.

After thorough deliberation, the Fair Work Commission found that the application for termination was valid and met the necessary legal requirements. The Commission concluded that the changes in the project scope and market conditions constituted sufficient grounds for termination under section 237(1)(a) of the Fair Work Act 2009. The court decided that the Sino Iron Project Monadelphous Engineering Associates Pty Ltd CFMEU Agreement 2011 could be terminated as it no longer served the interests of the parties involved. Consequently, the agreement was terminated, effective from the date specified in the application.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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