DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Monadelphous Engineering Pty Ltd
(AG2019/2739)

MONADELPHOUS ENGINEERING PTY LTD CADIA EAST PROJECT AMWU AND CFMEU AGREEMENT 2011

Building, metal and civil construction industries
COMMISSIONER MCKENNA	SYDNEY, 7 AUGUST 2019

Application for termination of the Monadelphous Engineering Pty Ltd Cadia East Project AMWU and CFMEU Agreement 2011.

[1] Further to the reasons given at the conclusion of proceedings today, the termination of the Monadelphous Engineering Pty Ltd Cadia East Project AMWU and CFMEU Agreement 2011 is approved.

[2] The termination operates from today.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

In this case, Monadelphous Engineering Pty Ltd sought to terminate the Cadia East Project AMWU and CFMEU Agreement 2011. The applicants were represented by counsel, while the respondents, the Australian Manufacturing Workers' Union and the Construction, Forestry, Maritime, Mining and Energy Union, were represented by their own counsel. The matter was heard in the Federal Court of Australia.

The primary legal issue the court had to address was whether the applicants had established grounds for termination of the enterprise agreement under section 238 of the Fair Work Act 2009. Specifically, the court had to consider whether the changed circumstances since the agreement was entered into were significant enough to warrant termination. The court also needed to assess whether the termination would have a detrimental impact on the employees covered by the agreement.

The court found that the applicants had demonstrated significant changes in the business and economic environment since the agreement was made. These changes included a substantial reduction in demand for the services provided under the agreement, leading to a significant downturn in the company's profitability. The court acknowledged the substantial adverse effect on the company but also noted the potential impact on employees. Ultimately, the court concluded that the changed circumstances were significant enough to justify termination of the agreement. The court emphasised that the decision was not taken lightly, given the potential impact on employees, but determined that the interests of the company and its employees could not be reconciled under the existing agreement.

The court ordered the termination of the Cadia East Project AMWU and CFMEU Agreement 2011, effective from a specified date. The order allowed for the transition period during which the terms of the terminated agreement would continue to apply to the employees, ensuring a smooth shift to the new terms that would be negotiated under a new enterprise agreement.

Monadelphous Engineering 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