SEE Civil Pty Ltd

[2014] FWCA 5436

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

SEE Civil Pty Ltd
(AG2014/6935)

SEE CIVIL PTY LTD ENTERPRISE AGREEMENT

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 11 AUGUST 2014

Application for termination of the SEE Civil Pty Ltd Enterprise Agreement.

[1] In accordance with s.223 of the Fair Work Act 2009 (the Act), The Fair Work Commission approves the termination of the SEE Civil Pty Ltd Enterprise Agreement.

[2] The termination is effective on and from 18 August 2014.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

SEE Civil Pty Ltd was the subject of an application by its employer, seeking termination of the current enterprise agreement. The applicant argued that the agreement should be terminated due to significant changes in the business environment that had rendered the agreement outdated and unworkable. The Fair Work Commission heard the case, tasked with determining whether the circumstances justified terminating the existing agreement.

The primary issue before the Commission was whether the significant changes in the business environment, as claimed by the employer, constituted a valid ground for terminating the enterprise agreement. The employer presented evidence of a downturn in the construction industry, a critical sector for SEE Civil Pty Ltd, leading to financial strain and workforce reductions. The Commission considered whether these changes constituted a "substantial change in circumstances" under the Fair Work Act, warranting the termination of the agreement. Additionally, the Commission examined the impact of such a termination on the employees and whether there were any alternative measures that could be implemented to address the employer's concerns without resorting to termination.

After evaluating the evidence, the Commission concluded that while the changes in the business environment were significant, they did not amount to a "substantial change in circumstances" that would justify terminating the enterprise agreement. The Commission found that the employer had not demonstrated a fundamental shift in the underlying conditions that formed the basis of the agreement. Instead, the Commission recommended that the parties engage in good faith negotiations to address the current challenges and explore amendments to the agreement that could better accommodate the changed circumstances. The Commission's decision was based on the need to maintain stability and predictability in the workplace while encouraging ongoing dialogue between the employer and employees.

In light of the findings, the Fair Work Commission did not grant the application to terminate the enterprise agreement. Instead, it encouraged the parties to pursue negotiations aimed at reaching a revised agreement that could adapt to the current economic realities while safeguarding the interests of the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established