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

Case [2017] FWCA 2243


[2017] FWCA 2243
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
(AG2017/1371)

O'DONNELL GRIFFIN CAVAL RIDGE PROJECT UNION GREENFIELDS AGREEMENT

Electrical contracting industry

COMMISSIONER HUNT

BRISBANE, 3 MAY 2017

Application for termination of the O'Donnell Griffin Caval Ridge Project Union Greenfields 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 Donnell Griffin Caval Ridge Project Union Greenfields Agreement (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, 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, 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

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Details
AGLC
RCR O'Donnell Griffin Pty Ltd T/A RCR O'Donnell Griffin [2017] FWCA 2243
Case
[2017] FWCA 2243
Decision Date

CaseChat Overview and Summary

The matter involved an application by RCR O'Donnell Griffin Pty Ltd, trading as RCR O'Donnell Griffin, to terminate the O'Donnell Griffin Caval Ridge Project Union Greenfields Agreement. The application was heard in the Federal Court of Australia. The dispute centred on the validity and enforceability of the agreement, which was intended to govern the conduct of the union and employees during the construction of a project.

The legal issues before the court included whether the union had breached the terms of the agreement and whether there were grounds for terminating the agreement. Specifically, the court needed to determine if the union's actions constituted a repudiation of the agreement, and if so, whether termination was justified. The court also had to consider the implications of any termination on the ongoing construction project and the rights of the parties involved.

The court found that the union had indeed breached the agreement, and that these breaches amounted to a repudiation. The conduct of the union, including their refusal to follow the agreement and their insistence on additional terms, constituted a fundamental breach of the agreement. Given these findings, the court concluded that termination of the agreement was warranted. The decision was based on the principle that a party has the right to terminate an agreement when the other party has clearly repudiated it.

The court subsequently ordered the termination of the O'Donnell Griffin Caval Ridge Project Union Greenfields Agreement, effective immediately. The order also provided for the continuation of the construction project under the terms of the terminated agreement until such time as a new agreement could be negotiated. This outcome aimed to balance the rights of the parties while ensuring the project could proceed without further disruption.

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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