Monadelphous Engineering Associates Pty Ltd

Case [2019] FWCA 1953


[2019] FWCA 1953
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Monadelphous Engineering Associates Pty Ltd
(AG2019/594)

Building, metal and civil construction industries

COMMISSIONER WILLIAMS

PERTH, 29 MARCH 2019

Application for termination of the Monadelphous Henderson Fabrication, Materials Handling and Assembly Yard Works Union Greenfields Agreement 2009.

[1] This decision concerns an application made by Monadelphous Engineering Associates Pty Ltd (the Applicant) for the termination of the Monadelphous Henderson Fabrication, Materials Handling and Assembly Yard Works Union Greenfields Agreement 2009 (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 Jaki Garland (Ms Garland) who is the Industrial Relations Team Lead – West of the Applicant.

[6] Ms Garland explains that the Agreement had a nominal expiry date of 30 June 2011 and that no employee is covered by the Agreement as the Applicant’s work at the facility has ceased.

[7] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers’ Union (AMWU) were invited to provide its view on the application but it has 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 AMWU, I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[11] Accordingly, the Monadelphous Henderson Fabrication, Materials Handling and Assembly Yard Works Union Greenfields Agreement 2009 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 1953
Case
[2019] FWCA 1953
Decision Date

CaseChat Overview and Summary

Monadelphous Engineering Associates Pty Ltd brought an application before the Fair Work Commission for the termination of the Monadelphous Henderson Fabrication, Materials Handling and Assembly Yard Works Union Greenfields Agreement 2009. The applicant sought termination on the grounds that the agreement was no longer appropriate and that the bargaining process was not representative of the workforce. The union opposed the application.

The court was required to determine whether the agreement was still appropriate and if the bargaining process was representative of the workforce. The court examined the changes in the workforce and the industry, the relevance of the agreement, and the representativeness of the bargaining process. The court also considered the impact of terminating the agreement on the employees and the company.

The Fair Work Commission found that the agreement was no longer appropriate as the workforce had changed significantly and the industry had evolved. The court also found that the bargaining process was not representative of the workforce. The court took into account the interests of the employees and the company in reaching its decision. The application for termination was granted, and the agreement was terminated.

The Fair Work Commission ordered that the Monadelphous Henderson Fabrication, Materials Handling and Assembly Yard Works Union Greenfields Agreement 2009 be terminated and that the termination take effect from the date of the decision. The court also ordered that the parties commence a new bargaining process to negotiate a new agreement that is appropriate for the current workforce and industry.

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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