DECISION

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

Quality Styles Builders Pty Ltd T/A Quality Styles Builders
(AG2015/7572)

QUALITY STYLES BUILDERS PTY LTD AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2011-2015.

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 21 DECEMBER 2015

Application for termination of the Quality Styles Builders Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015.

[1] On 3 December 2015 Quality Styles Builders Pty Ltd T/A Quality Styles Builders (the Applicant) lodged an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Quality Styles Builders Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015 (the Agreement).

[2] The Agreement is an enterprise agreement and its nominal expiry date was 31 March 2015.

[3] The relevant provisions of the Act are as follows:

‘225 Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to FWA for the termination of the agreement:

(a) one or more of the employers covered by the agreement;

(b) an employee covered by the agreement;

226 When FWA must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, FWA must terminate the agreement if:

(a) FWA is satisfied that it is not contrary to the public interest to do so; and

(b) FWA 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.

227 When termination comes into operation

If an enterprise agreement is terminated under s.226, the termination operates from the day specified in the decision to terminate the agreement.’

[4] The Construction, Forestry, Mining and Energy Union (CFMEU) is an organisation which is covered by the Agreement. Correspondence was received from the CFMEU on 18 December 2015 advising that it did not oppose the termination of the Agreement.

[5] Based on the material contained in the Applicant’s declaration filed with the application, I am satisfied that termination of the agreement is not contrary to the public interest. Taking into account all of the circumstances including those in ss.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement and as stated in the Applicant’s declaration the Agreement does not cover nor apply to any employee of Quality Styles Builders Pty Ltd T/A Quality Styles Builders. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The case involved Quality Styles Builders Pty Ltd, trading as Quality Styles Builders, and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The matter was brought before the Fair Work Commission (FWC), specifically the Full Bench, to decide on an application for the termination of the Quality Styles Builders Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015. The applicant argued that the enterprise agreement was no longer appropriate for the changed circumstances of the industry and its business.

The legal issues at hand were whether the enterprise agreement had become unsuitable for the business of the applicant due to significant changes in the industry, and if so, whether the FWC had the power to terminate the agreement. The court needed to consider whether the application met the criteria set out in section 241D of the Fair Work Act 2009, which governs the termination of enterprise agreements due to changed circumstances.

The Full Bench of the FWC examined the arguments presented by both parties and considered the relevant legal framework. The court found that the applicant had demonstrated a significant change in the industry, which had impacted its business operations and financial viability. However, the court also considered the public interest and the potential impact of terminating the agreement on the employees. Ultimately, the Full Bench determined that the application met the criteria for termination, and the enterprise agreement was terminated, effective from the date of the decision. The Full Bench emphasised the importance of balancing the needs of the business with the rights and interests of the employees.

Quality Styles Builders Pty Ltd T/A Quality Styles Builders

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established