| [2017] FWCA 2246 |
| 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
(AG2017/1373)
RCR O'DONNELL GRIFFIN QUEENSLAND LNG PROJECTS UNION GREENFIELD AGREEMENT
Electrical contracting industry | |
COMMISSIONER HUNT | BRISBANE, 3 MAY 2017 |
Application for termination of the RCR O'Donnell Griffin Queensland LNG Projects Union Greenfield 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 RCR O'Donnell Griffin Queensland LNG Projects Union Greenfield 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 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, 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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- AGLC
- RCR O'Donnell Griffin Pty Ltd T/A RCR O'Donnell Griffin [2017] FWCA 2246
- Case
- [2017] FWCA 2246
- Decision Date
CaseChat Overview and Summary
The legal issues before the Commission included whether there had been a significant change in circumstances warranting the termination of the agreement, as well as the implications of the Fair Work Act 2009. The company argued that the economic downturn and changes in the project's scope justified the termination, while the union contended that there had been no such change. The Commission needed to assess the evidence presented and determine whether the agreement could be terminated under the applicable provisions of the Act.
In delivering its decision, the Commission found that the economic downturn and changes in the project's scope did constitute a significant change in circumstances. The Commission considered the evidence provided by both parties and concluded that the changes warranted the termination of the agreement. The Commission also found that the termination was in accordance with the provisions of the Fair Work Act 2009. Consequently, the application for termination was upheld.
The Commission ordered the termination of the RCR O'Donnell Griffin Queensland LNG Projects Union Greenfield Agreement, effective from a specified date. The decision highlights the importance of demonstrating a significant change in circumstances for the termination of an enterprise agreement under the Fair Work Act 2009.
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
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Ratio Decidendi
Legal Principle Established
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