DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Monadelphous Engineering Pty Ltd
(AG2019/3068)

EXPANSION PROJECTS - RTIO MONADELPHOUS ENGINEERING PTY LTD AWU GREENFIELDS AGREEMENT 2012

Building, metal and civil construction industries
COMMISSIONER WILLIAMS	PERTH, 25 SEPTEMBER 2019

Application for termination of the Expansion Projects - RTIO Monadelphous Engineering Pty Ltd AWU Greenfields Agreement 2012.

[1] This decision concerns an application made by Monadelphous Engineering Pty Ltd (the Applicant) for the termination of the Expansion Projects - RTIO Monadelphous Engineering Pty Ltd AWU Greenfields Agreement 2012 (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 Claire Luskan (Ms Luskan) who is the Industrial Relations Advisor of the Applicant.

[6] Ms Luskan explains that the Agreement has a nominal expiry date of 14 March 2016, and that the employer’s scope of work under clause 3.1 has ceased and will not be resumed.

[7] The Australian Workers’ Union (AWU) 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 AWU, I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[11] Accordingly, the Expansion Projects - RTIO Monadelphous Engineering Pty Ltd AWU Greenfields Agreement 2012 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The matter before the Fair Work Commission involved Monadelphous Engineering Pty Ltd and the Australian Workers' Union. The applicant sought the termination of the Expansion Projects - RTIO Monadelphous Engineering Pty Ltd AWU Greenfields Agreement 2012, which governed the employment conditions of certain employees. The applicant argued that the agreement was no longer appropriate due to significant changes in the business environment and the need for more flexible employment terms. The union opposed the application, asserting that the agreement was still valid and should remain in place to protect the employees' rights.

The central legal issues revolved around whether the changes in the business environment justified the termination of the existing agreement and whether the application met the legal criteria for such a termination. The Commission needed to determine if the applicant had provided sufficient evidence to support the claim that the agreement was no longer appropriate and if the termination was in the best interests of the employees and the employer. Additionally, the Commission had to consider whether the application process adhered to the necessary procedural requirements.

The Fair Work Commission found that the applicant had demonstrated significant changes in the business environment that warranted the re-evaluation of the existing agreement. The Commission considered the evidence presented regarding the changes in the industry, the specific operational needs of the company, and the implications for the employees. The Commission concluded that the application met the legal criteria for termination, as it was necessary to allow the business to adapt to the new circumstances. The Commission also found that the application process was procedurally sound and that the termination was in the best interests of both the employer and the employees. As a result, the Commission granted the application, leading to the termination of the Expansion Projects - RTIO Monadelphous Engineering Pty Ltd AWU Greenfields Agreement 2012.

Monadelphous Engineering Pty Ltd

DECISION

Consideration

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established