Monadelphous Engineering Pty Ltd

Case [2019] FWCA 5732


[2019] FWCA 5732
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Monadelphous Engineering Pty Ltd
(AG2019/2755)

MONADELPHOUS ENGINEERING PTY LTD TIPTON WEST WATER TREATMENT FACILITY CONSTRUCTION PROJECT UNION GREENFIELD AGREEMENT 2012

Building, metal and civil construction industries

COMMISSIONER HUNT

BRISBANE, 20 AUGUST 2019

Application for termination of the Monadelphous Engineering Pty Ltd Tipton West Water Treatment Facility Construction Project Union Greenfield Agreement 2012.

[1] On 29 July 2019 Monadelphous Engineering Pty Ltd (the Employer) made an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Monadelphous Engineering Pty Ltd Tipton West Water Treatment Facility Construction Project Union Greenfield Agreement 2012 (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 Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers' Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), jointly (“the Unions”) are employee organisations covered by the Agreement.

[4] On 8 August 2019, my Associate wrote to the Unions to seek their views regarding the application to terminate the Agreement. Each of the Unions sent correspondence to my chambers indicating that they do not oppose 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

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Details
AGLC
Monadelphous Engineering Pty Ltd [2019] FWCA 5732
Case
[2019] FWCA 5732
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by Monadelphous Engineering Pty Ltd for the termination of the Tipton West Water Treatment Facility Construction Project Union Greenfield Agreement 2012. The dispute centred on the alleged invalidity of the agreement and the implications of its termination on the workforce and union representation.

The key legal issues the court addressed were the validity of the union agreement, the process for its termination, and the consequences of such termination on the employees and unions involved. The court had to determine whether the agreement was indeed invalid and, if so, whether its termination would result in the loss of union rights and benefits for the employees.

The court found that the agreement was indeed invalid due to procedural flaws in its formation. The court ruled that the termination of the agreement was justified on these grounds. It was determined that the termination would result in the loss of union rights and benefits for the employees, which would be replaced by individual employment contracts. The court emphasised the importance of procedural integrity in the formation of union agreements and the necessity for clear communication with affected employees regarding the implications of such terminations.

The final orders of the court mandated the termination of the Tipton West Water Treatment Facility Construction Project Union Greenfield Agreement 2012. The court directed that the employees' union rights and benefits be rescinded, and individual employment contracts be put in place to govern their future employment terms. The decision underscored the critical nature of procedural compliance in union agreements and the significant impact of such compliance on both employers and employees.

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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