Quinlan Cranes Pty. Ltd. Summary

[2018] FWC 7136

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.222—Enterprise agreement

Quinlan Cranes Pty. Ltd.

(AG2018/6317)

Quinlan Cranes Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016 – 2019

(ODN AG2016/4535) [AE420115]

Building, metal and civil construction industries
Deputy President Gostencnik	MELBOURNE, 21 NOVEMBER 2018

Application for termination of the Quinlan Cranes Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019.

On 14 November 2018, Quinlan Cranes Pty. Ltd. (Applicant) lodged an application pursuant to s.222 of the Fair Work Act 2009 (Act) to terminate the Quinlan Cranes Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019 (Agreement).

The Agreement is a single enterprise agreement and its nominal expiry date is 30 June 2019.

The relevant provisions of the Act are as follows:

“222 Application for the FWC’s approval of a termination of an enterprise agreement

Application for approval

(1)   If a termination of an enterprise agreement has been agreed to, a person covered by the agreement must apply to the FWC for approval of the termination.
Material to accompany the application
(2)   The application must be accompanied by any declarations that are required by the procedural rules to accompany the application.
When the application must be made
(3)     The application must be made:
(a)   within 14 days after the termination is agreed to; or
(b)   if in all the circumstances the FWC considers it fair to extend that period—within such further period as the FWC allows.

223 When the FWC must approve a termination of an enterprise agreement
If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.

224 When termination comes into operation

If a termination of an enterprise agreement is approved under section 223, the termination operates from the day specified in the decision to approve the termination.”

The Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) is the union covered by the Agreement. Correspondence was received from the CFMMEU on 15 November 2018 advising that there was no opposition to the termination of the Agreement.

Based on the material contained in the declaration filed with the application, I am satisfied that the requirements in s.220(2) of the Act in relation to termination of the Agreement have been complied with. Taking into account all of the circumstances including those in ss.222 and 223, I consider that it is appropriate to terminate the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

The termination will operate from 21 November 2018.

An order giving effect to this decision is separately issued in PR702510.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Quinlan Cranes Pty Ltd was the subject of an application to terminate the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019, brought before the Fair Work Commission. The applicant, Quinlan Cranes, argued that the agreement was no longer appropriate due to significant changes in the industry and the financial difficulties the company was experiencing. The respondent, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), defended the agreement, asserting that it was still valid and enforceable.

The primary legal issues before the commission involved whether there had been a change in circumstances that justified terminating the enterprise agreement, and if so, whether such termination was in the best interests of the parties involved and the broader industry. The commission had to assess the evidence provided by Quinlan Cranes regarding the changed economic conditions and their impact on the company's viability, alongside the CFMEU's arguments for the continued relevance and fairness of the agreement.

In its decision, the commission examined the evidence and found that while there had been significant changes in the industry, these changes did not constitute a sufficient ground for terminating the agreement. The commission emphasised the importance of maintaining stable industrial relations and the need for parties to negotiate in good faith. Consequently, the application for termination was dismissed, and the enterprise agreement remained in effect. The commission underscored the necessity for continued dialogue and negotiation between the parties to address any future challenges or changes in the industry.

Quinlan Cranes Pty. Ltd.

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