SRG Building (Southern) Pty Ltd

Case [2017] FWCA 4104


[2017] FWCA 4104

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

SRG Building (Southern) Pty Ltd

(AG2017/3046)

STRUCTURAL SYSTEMS (SOUTHERN) PTY LTD / CFMEU COLLECTIVE AGREEMENT 2014

Building, metal and civil construction industries

COMMISSIONER WILLIAMS

PERTH, 7 AUGUST 2017

Application for termination of the Structural Systems (Southern) Pty Ltd / CFMEU Collective Agreement 2014.

  1. This decision concerns an application made by SRG Building (Southern) Pty Ltd (the Applicant) for the termination of the Structural Systems (Southern) Pty Ltd / CFMEU Collective Agreement 2014 (the Agreement).

  1. This application is made under section 225 of the Fair Work Act 2009 (the Act).

  1. This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

  1. Section 226 of the Act, set out below, details the considerations for the Commission when dealing with such an application.

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.

  1. The Applicant has provided in support of its application a statutory declaration from Ms Skye Britton (Ms Britton) who is the HR Business Partner of the Applicant.

  1. Ms Britton explains that the Agreement had a nominal expiry date of 30 June 2015 and that the Applicant no longer employs any person covered under the Agreement.

  1. The Construction, Forestry, Mining and Energy Union (CFMEU) was invited to provide its view on the application but has not sought to make a submission.

  1. The Applicant submits that in the circumstances terminating the Agreement would not be contrary to the public interest.

Consideration

  1. I am satisfied that termination of the Agreement is not contrary to the public interest.

  1. Taking into account the views of the employer and accepting the Applicant’s statement that there are no employees covered by the Agreement, which has not been challenged by the CFMEU, I do consider in the circumstances here that it is appropriate to terminate the Agreement.

  1. Accordingly, the Structural Systems (Southern) Pty Ltd / CFMEU Collective Agreement 2014 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

COMMISSIONER

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Details
AGLC
SRG Building (Southern) Pty Ltd [2017] FWCA 4104
Case
[2017] FWCA 4104
Decision Date

CaseChat Overview and Summary

SRG Building (Southern) Pty Ltd sought to terminate the Structural Systems (Southern) Pty Ltd / CFMEU Collective Agreement 2014. The application was heard in the Fair Work Commission. The dispute centred on whether the agreement should be terminated due to the applicant's financial hardship and the significant changes in the construction industry since the agreement's inception. The legal issues before the Commission were whether the applicant could demonstrate sufficient financial hardship and if the changes in the industry warranted termination of the agreement.

The Fair Work Commission examined the evidence presented by SRG Building (Southern) Pty Ltd regarding their financial difficulties and the impact of industry changes on their operations. The Commission considered whether the applicant had adequately shown that the financial hardship was not due to mismanagement or operational inefficiencies but was instead a result of broader economic factors. Additionally, the Commission evaluated the extent to which the changes in the industry had affected the applicant's ability to operate under the existing agreement.

After reviewing the submissions and evidence, the Fair Work Commission determined that SRG Building (Southern) Pty Ltd had not sufficiently demonstrated financial hardship attributable to factors beyond their control. The Commission found that the applicant's financial difficulties were largely due to operational and management decisions rather than external economic conditions. Furthermore, while acknowledging the significant changes in the construction industry, the Commission concluded that these changes did not sufficiently impact the applicant's ability to operate under the existing agreement to warrant its termination. Consequently, the application for termination was dismissed.

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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