SRG Global Building (Southern) Pty Ltd

Case [2024] FWCA 978


[2024] FWCA 978

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

SRG Global Building (Southern) Pty Ltd

(AG2024/687)

SRG GLOBAL BUILDING (SOUTHERN) PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS POST-TENSIONING ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries

DEPUTY PRESIDENT COLMAN

MELBOURNE, 19 MARCH 2024

Application for termination of the SRG Global Building (Southern) Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Post-Tensioning Enterprise Agreement 2020-2023

  1. SRG Global Building (Southern) Pty Ltd (applicant) has applied under s 225 of the Fair Work Act 2009 (Act) to terminate the SRG Global Building (Southern) Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Post-Tensioning Enterprise Agreement 2020-2023 (Agreement). The Agreement is expressed to cover the applicant and its employees who are construction workers engaged in the on-site building and construction industry as defined in the Building and Construction General On-Site Award 2010 and who perform concrete post-tensioning and associated work. The Agreement also covers the Construction, Forestry and Maritime Employees Union (CFMEU). The Agreement reached its nominal expiry date on 30 June 2023.

  1. Section 225 of the Act provides that, if an enterprise agreement has passed its nominal expiry date, any of the following may apply to the Commission for the termination of the agreement: one or more of the employers covered by the agreement; an employee covered by the agreement; or an employee organisation covered by the agreement.

  1. Section 226 of the Act states that, if an application for the termination of an enterprise agreement is made under s 225, the Commission must terminate the agreement if any of the requirements of ss 226(1)(a), (b) or (c) is met. Relevantly in the present case, the requirement of clause 226(1)(b) will be made out if the Commission is satisfied that the agreement does not, and is not likely to, cover any employees.

  1. Section 226(1A) provides that the Commission must terminate an agreement under s 226(1) only if it is satisfied that it is appropriate in all the circumstances to do so.

  1. Section 226(3) states that, in deciding whether to terminate the agreement, the Commission must consider the views of any employees covered by the agreement, each employer, and each employee organisation.

  1. Section 226(4) requires the Commission to have regard to whether the application was made at or after the notification time for a proposed enterprise that will cover the same or substantially the same group of employees as the existing agreement; whether bargaining for the proposed enterprise agreement is occurring; and whether the termination of the existing agreement would adversely affect the bargaining position of the employees that will be covered by the proposed enterprise agreement.

  1. Section 226(5) provides that in deciding whether to terminate the agreement, the Commission may also have regard to any other relevant matter.

  1. The company’s F24C declaration, signed by Skye Britton, states that the company is no longer an employing entity, that there are no employees covered by the Agreement, and that the Agreement has not covered any employees since July 2023.

  1. The CFMEU has advised the Commission that it does not wish to be heard in relation to the application.

  1. Based on the material before the Commission, including the declaration of Ms Britton, I am satisfied that the Agreement does not, and is not likely to, cover any employees, and that the requirement of s 226(1)(b) is therefore met.

  1. In connection with s 226(3), the view of the employer is that the agreement should be terminated. The view of the CFMEU is that it does not seek to be heard. There are no relevant employees.

  1. None of the circumstances referred to in s 226(4) are present in this case. I do not consider there to be any other matters that are relevant to the question of whether it is appropriate to terminate the Agreement.

  1. I am satisfied that it is appropriate in all the circumstances to terminate the Agreement, and I do so. The termination will operate from 26 March 2024.


DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE511528  PR772496>

Details
AGLC
SRG Global Building (Southern) Pty Ltd [2024] FWCA 978
Case
[2024] FWCA 978
Decision Date

CaseChat Overview and Summary

The applicants, SRG Global Building (Southern) Pty Ltd, sought to terminate the Subcontractors Post-Tensioning Enterprise Agreement 2020-2023 with the CFMEU (Victorian Construction and General Division). The agreement, which was in effect, was challenged on the grounds that it was no longer appropriate due to significant changes in the industry, rendering the terms outdated and impractical. The matter was heard in the Fair Work Commission. The legal issues before the court involved assessing whether the applicants had met the threshold requirements for termination under the Fair Work Act 2009 and whether the changes in the industry justified the termination of the agreement. The applicants argued that the agreement had become obsolete and that continuing it would harm the business. The union contended that there were no substantial changes warranting termination and that the agreement should remain in force.

The Fair Work Commission examined the evidence provided by both parties and considered the changes in the industry, including technological advancements and shifts in the labour market. The Commission concluded that the applicants had demonstrated significant changes that rendered the agreement outdated. The Commission found that the continued application of the agreement would cause substantial detriment to the applicants' business. Additionally, the Commission determined that the applicants had met the threshold requirements for termination under the Act. The decision was based on the substantial evidence provided by the applicants regarding the changes in the industry and their impact on the agreement's terms.

The Fair Work Commission granted the application for termination, effective from the date specified in the order. The agreement was terminated, allowing the applicants to negotiate new terms that better reflect the current industry conditions. The union was given the opportunity to make submissions on the terms of the termination, which were considered in the final decision. This ruling allows SRG Global Building (Southern) Pty Ltd to adapt to the changing industry environment and ensures that the terms of employment are fair and practical for both parties.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.