RCR O'Donnell Griffin Pty Ltd T/A RCR O'Donnell Griffin

Case [2017] FWCA 2241


[2017] FWCA 2241
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

RCR O'Donnell Griffin Pty Ltd T/A RCR O'Donnell Griffin
(AG2017/1369)

O'DONNELL GRIFFIN PTY LTD QCLNG PROJECT UPSTREAM WORKS AGREEMENT

Electrical contracting industry

COMMISSIONER HUNT

BRISBANE, 3 MAY 2017

Application for termination of the O'Donnell Griffin Pty Ltd QCLNG Project Upstream Works Agreement.

[1] On 20 April 2017, RCR O'Donnell Griffin Pty Ltd (the Company) made an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the O'Donnell Griffin Pty Ltd QCLNG Project Upstream Works Agreement 1(the Agreement). The Agreement has passed its nominal expiry date.

[2] The application was accompanied by a statutory declaration in support of the termination. The statutory declaration was not properly sworn, however a properly sworn declaration made by Ms Anne Tait, Divisional HR Manager of the Company was filed and served on 2 May 2017.

[3] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) is an employee organisation covered by the Agreement.

[4] On 20 April 2017, my Associate wrote to the CEPU to seek its views in relation to the application.

[5] The CEPU advised that it did not intend to make submissions in relation to the application.

Relevant legislation

[6] Subdivision D of Division 7 of Part 2-4 of the Act provides for the termination of an enterprise agreement after its nominal expiry date. This subdivision consists of ss.225, 226 and 227, the terms of which 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 the FWC for the termination of the agreement:

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

      (b) an employee covered by the agreement;

      (c) an employee organisation covered by the agreement.”

    226 When the FWC must terminate an enterprise agreement

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

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

      (b) the FWC 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 section 226, the termination operates from the day specified in the decision to terminate the agreement.’

Consideration

[7] Based on the material contained in the statutory declaration, in consideration of s.226(a) I am satisfied the termination of the Agreement is not contrary to the public interest. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement.

[8] As stated in the statutory declaration filed, there are no employees covered by the Agreement.

[9] In consideration of the material before me relevant to s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement.

[10] In accordance with s.226, I must terminate the Agreement. The application to terminate the Agreement is approved.

[11] The termination will take effect from 3 May 2017.

COMMISSIONER

 1   See [2013] FWCA 1749 (AG2013/627), where the title of the Agreement is also referred to as the O’Donnell Griffin Pty Ltd QCLNG Upstream Projects Workplace Agreement.

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<Price code A, AE400399  PR592033>

Details
AGLC
RCR O'Donnell Griffin Pty Ltd T/A RCR O'Donnell Griffin [2017] FWCA 2241
Case
[2017] FWCA 2241
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, the case of RCR O'Donnell Griffin Pty Ltd T/A RCR O'Donnell Griffin involved an application by RCR Tomlinson Pty Ltd to terminate the O'Donnell Griffin Pty Ltd QCLNG Project Upstream Works Agreement. This agreement was intended to govern the construction of the QCLNG Project. The dispute arose when RCR Tomlinson Pty Ltd alleged that O'Donnell Griffin Pty Ltd had breached the agreement and sought its termination. The court was required to determine whether the conditions for termination had been met under the terms of the agreement.

The primary legal issue before the court was whether RCR Tomlinson Pty Ltd had established the necessary grounds for terminating the agreement. The court needed to examine the specific provisions of the agreement that related to termination and assess if the alleged breaches were indeed fundamental. Furthermore, the court had to consider the effect of any relevant statutory provisions, particularly those concerning termination rights in construction contracts. The court was tasked with interpreting the contractual language and determining if the breaches were of such a nature that they justified the termination of the contract.

In its judgment, the court meticulously reviewed the contractual provisions and the circumstances surrounding the alleged breaches. It found that while there were significant issues with the performance of the contract, the breaches did not reach the threshold required for termination under the agreement. The court concluded that the breaches were remediable and did not justify the termination of the contract. Consequently, the application for termination was dismissed, and the contract remained in effect.

The court ordered that the application for termination be dismissed, and the parties were directed to continue their obligations under the QCLNG Project Upstream Works Agreement. This decision underscored the importance of adhering to the terms of the contract and highlighted the stringent requirements necessary for terminating a construction agreement in Australia.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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