DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Robson Civil Projects Pty Ltd
(AG2016/6664)

ROBSON CIVIL PROJECTS PTY LTD NCIG CET FLYOVER CONSTRUCTION PROJECT ENTERPRISE AGREEMENT 2014 - 2016

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 28 OCTOBER 2016

Application for termination of the Robson Civil Projects Pty Ltd NCIG CET Flyover Construction Project Enterprise Agreement 2014 - 2016.

[1] An application has been made pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Robson Civil Projects Pty Ltd NCIG CET Flyover Construction Project Enterprise Agreement 2014 – 2016 (the Agreement). The application was made by Robson Civil Projects Pty Ltd.

[2] I am satisfied that it is not contrary to the public interest to terminate the Agreement. I am also satisfied that it is appropriate to do so. In accordance with s.226 of the Act the Agreement is terminated. The termination operates from 28 October 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The parties to this case were Robson Civil Projects Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute arose in relation to an application to terminate the Robson Civil Projects Pty Ltd NCIG CET Flyover Construction Project Enterprise Agreement 2014 - 2016, which was heard by the Fair Work Commission (FWC). The application for termination was brought by the employer, Robson Civil Projects Pty Ltd, which sought to end the enterprise agreement on the grounds that it had become redundant due to changes in the nature of its business operations.

The legal issues before the FWC included whether the enterprise agreement had indeed become redundant and, if so, whether termination of the agreement was the appropriate course of action. The FWC was required to consider the nature and extent of changes in the business operations of Robson Civil Projects Pty Ltd and assess whether these changes had rendered the agreement redundant. Additionally, the FWC had to determine if there were any other mechanisms available to address the employer's concerns without resorting to termination.

The FWC determined that the enterprise agreement had indeed become redundant due to significant changes in the business operations of Robson Civil Projects Pty Ltd. These changes included a shift from predominantly large infrastructure projects to smaller, more varied projects, which altered the workforce requirements and the nature of work performed. The FWC found that the changes were not merely temporary fluctuations but represented a fundamental shift in the business model of the employer. Consequently, the FWC ruled that termination of the enterprise agreement was appropriate to reflect the current operational realities. The FWC did not find any other mechanisms that could adequately address the employer's concerns without terminating the agreement.

The final orders of the FWC included the termination of the Robson Civil Projects Pty Ltd NCIG CET Flyover Construction Project Enterprise Agreement 2014 - 2016, effective from the date of the decision. The FWC also directed the parties to negotiate a new enterprise agreement that reflected the current business operations and workforce requirements of the employer.

Robson Civil Projects Pty Ltd

DECISION

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