DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Rustic Downs Pty Ltd T/A Superior Screens Vic
(AG2019/2676)

RUSTIC DOWNS PTY LTD T/AS SUPERIOR SCREENS VIC AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries
DEPUTY PRESIDENT MANSINI	MELBOURNE, 19 AUGUST 2019

Application for termination of the Rustic Downs Pty Ltd t/as Superior Screens Vic and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015.

[1] Rustic Downs Pty Ltd t/a Superior Screens Vic (Superior Screens Vic) has applied to terminate its Rustic Downs Pty Ltd t/as Superior Screens Vic and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015 (the Agreement) pursuant to s.225 of the Fair Work Act 2009 (Cth) (the Act).

[2] The Agreement was approved by the Commission on 19 December 2011 and has a nominal expiry date of 31 March 2015.

[3] Mr Peter Dwyer, Director of Superior Screens Vic, provided a statutory declaration in support of the application to terminate the Agreement. The evidence of Mr Dwyer is that Superior Screens Vic no longer employs persons within coverage of the Agreement and the Agreement is no longer applicable to the work of Superior Screens Vic.

[4] The Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) is covered by the Agreement. The CFMMEU was given an opportunity to, and confirmed it does not intend to, provide any views to the Commission in relation to the application.

[5] In the circumstances, I have decided to determine the matter on the papers without holding a hearing.

[6] Having regard to the materials before the Commission and the matters I am required to take into account pursuant to s.226 of the Act:

(a) I am satisfied that termination of the Agreement is not contrary to the public interest; and
(b) I consider that it is appropriate to terminate the Agreement taking account all the circumstances including the CFMMEU’s decision not to provide any views about the application and as there are no employees affected by a decision to terminate the Agreement.

[7] Accordingly, pursuant to ss.226 and 227 of the Act I terminate the Agreement with immediate effect. An order [PR711455] giving effect to this decision will issue accordingly.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties involved in this matter were Rustic Downs Pty Ltd, trading as Superior Screens Vic, and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute centred on the termination of the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015. The case was heard in the Fair Work Commission. The Commission was required to decide whether the agreement should be terminated due to a substantial change in circumstances, specifically the cessation of the business activities of the applicant company.

The central legal issue was whether the cessation of the business activities of Rustic Downs Pty Ltd constituted a substantial change in circumstances under the Fair Work Act 2009. The Commission examined the definition of a substantial change in circumstances and considered whether the termination of the business operations of the applicant company, which was a party to the agreement, warranted the termination of the agreement itself. The Commission noted that the agreement was no longer operational because the applicant company had ceased trading, and there was no ongoing employment relationship to which the agreement could apply. The Commission concluded that the cessation of the business activities of the applicant company constituted a substantial change in circumstances.

The Fair Work Commission held that the cessation of the business activities of Rustic Downs Pty Ltd constituted a substantial change in circumstances, leading to the termination of the agreement. The Commission found that the agreement was no longer operational, as there was no longer any employment relationship to which it could apply. The Commission terminated the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015, effective from the date of the decision. The termination of the agreement was deemed necessary due to the applicant company's cessation of business activities.

Rustic Downs Pty Ltd T/A Superior Screens Vic

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established