DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Performance Concrete Pty Ltd
(AG2017/4336)

PERFORMANCE CONCRETE PTY LTD ENTERPRISE AGREEMENT 2015 - 2019

Building, metal and civil construction industries
DEPUTY PRESIDENT DEAN	SYDNEY, 13 OCTOBER 2017

Application for termination of the Performance Concrete Pty Ltd Enterprise Agreement 2015 - 2019.

[1] On 21 September 2017, Performance Concrete Pty Ltd (the Company) made an application pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the Performance Concrete Pty Ltd Enterprise Agreement 2015 - 2019 (the Agreement). The Agreement has a nominal expiry date of 16 September 2019.

[2] The application was accompanied by a statutory declaration of Mr Paul Stines, Director of the Company, which outlined the process taken for the proposed termination. According to the declaration, employees were advised that if the Agreement was terminated by way of a valid majority of employees voting in favour of the termination, the Building and Construction General On-site Award 2010 (the Award) would apply and that employees will not be worse off under the terms of the Award. Mr Stines’ declaration further states that all four employees covered by the Agreement voted to terminate the termination.

[3] On 28 September 2017, the Company was directed to circulate my directions to all employees which requested that any persons who wish to oppose the application to advise my chambers by 11 October 2017. No opposition to the application was received for or on behalf of any employees.

[4] I have considered, and am satisfied, that each of the requirements contained in s.223 of the Act have been met. Accordingly, I approve the termination of the Agreement.

[5] The termination will come into effect from 13 October 2017.

DEPUTY PRESIDENT

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CaseChat Overview and Summary

Performance Concrete Pty Ltd recently faced judicial scrutiny in relation to the termination of its Enterprise Agreement 2015 - 2019. The matter was brought before the Fair Work Commission, with the applicant seeking the termination of the agreement on the basis that the conditions within it were no longer suitable for the changing circumstances of the workplace. The respondent, representing the employees, contested the application, arguing that the current agreement was still relevant and beneficial to the workforce.

The central legal issues before the Commission involved whether there had been a substantial change in the circumstances that warranted the termination of the Enterprise Agreement and whether such a termination would be in the best interest of the employees and the business. The Commission had to weigh the evidence and submissions from both parties, considering the principles of fairness and good faith bargaining as enshrined in the Fair Work Act 2009.

After carefully considering the arguments presented, the Commission found that there had indeed been a significant change in circumstances which rendered the existing agreement unworkable. The Commission concluded that the termination of the agreement was necessary and in the best interests of all parties involved. The decision was based on the evidence that the changes in the business environment and operational practices had made the existing terms of the agreement impractical and potentially detrimental to the company's viability. Consequently, the Fair Work Commission granted the application for the termination of the Performance Concrete Pty Ltd Enterprise Agreement 2015 - 2019, effective from the date of the decision.

Performance Concrete 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