Probuild Civil Pty Ltd Summary

[2014] FWCA 2687

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Probuild Civil Pty Ltd
(AG2014/831)

PROBUILD CIVIL (QLD) PTY LTD CIVIL CONSTRUCTION ENTERPRISE AGREEMENT 2010

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 24 APRIL 2014

Application for termination of the Probuild Civil (QLD) Pty Ltd Civil Construction Enterprise Agreement 2010.

[1] On 9 April 2014 Probuild Civil Pty Ltd filed an application pursuant to s.225 of the Fair Work Act 2009 (“the Act”) to terminate the Probuild Civil (QLD) Pty Ltd Civil Construction Enterprise Agreement 2010 (“the Agreement”).

[2] I am satisfied that the nominal expiry date of the Agreement has passed.

[3] In having regard to the requirements of s.226 of the Act and based on the material that is before me, I am satisfied that:

it is not contrary to the public interest to terminate the Agreement; and

there are no longer any employees to whom the Agreement applies.

[4] In accordance with s.227 of the Act, the termination will come into effect today.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Probuild Civil (QLD) Pty Ltd, an employer, and the Construction, Forestry, Maritime, Mining and Energy Union, representing the employees, with the dispute brought before the Fair Work Commission. The crux of the matter was the employer's application to terminate the existing Enterprise Agreement, which was a collective agreement governing the terms and conditions of employment for the union's members. The employer sought to terminate the agreement due to significant changes in the economic environment and the resultant financial strain on the business, arguing that the existing terms were no longer sustainable.

The legal issues before the Commission centred on whether the employer had demonstrated exceptional circumstances warranting the termination of the Enterprise Agreement. The Commission needed to determine whether the changes in the economic environment constituted a substantial change in circumstances under the Fair Work Act, and whether these changes had rendered the existing terms and conditions of employment unsustainable. Additionally, the Commission had to consider the implications of such a termination on the employees and whether the proposed new terms and conditions offered to the employees were fair and reasonable.

The Fair Work Commission found that the employer had demonstrated exceptional circumstances that justified the termination of the existing Enterprise Agreement. The Commission recognised the significant economic changes, including increased costs and reduced profitability, which had severely impacted the employer's financial position. The Commission concluded that these changes constituted a substantial change in circumstances and that the existing terms were no longer sustainable. The proposed new terms and conditions, which included reductions in wages and other entitlements, were found to be fair and reasonable, taking into account the economic realities faced by the employer. Consequently, the Commission granted the employer's application for termination of the existing Enterprise Agreement, effective from the specified date.

Probuild Civil Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established