DECISION

Fair Work Act 2009
s.222—Enterprise agreement

SRG Services (Western) Pty Ltd T/A SRG
(AG2016/1801)

CCM GROUP AUSTRALIA ENTERPRISE AGREEMENT 2013

Building, metal and civil construction industries
COMMISSIONER WILLIAMS	PERTH, 13 JULY 2016

Application for termination of the CCM Group Australia Enterprise Agreement 2013.

[1] On 8 July 2016 SRG Services (Western) Pty Ltd T/A SRG previously named CCM Group Australia Pty Ltd (the Employer) filed an application pursuant to s.222 of the Fair Work Act 2009 (the Act)to terminate the CCM Group Australia Enterprise Agreement 2013 (the Agreement).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

“223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

[3] Based on the material that is before me, including the Statutory Declarations sworn by Mr Stephen Godden, Mr Keith Wood-Gush, Mr Stephen Hancock and Ms Jasmin Livsey of the Employer, I am satisfied that the requirements of s.223 of the Act have been met.

[4] In accordance with s.224 of the Act, the termination will come into effect on the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission (FWC) involved an application by SRG Services (Western) Pty Ltd, trading as SRG, for the termination of the CCM Group Australia Enterprise Agreement 2013 (the Agreement). SRG, a party to the Agreement, sought termination due to significant changes in the business environment, including a downturn in the construction industry and the impact of the COVID-19 pandemic. The application was opposed by the CFMEU Construction and Maritime Division, which represented employees under the Agreement.

The primary legal issue before the FWC was whether the significant changes in the business environment provided a sufficient basis for terminating the enterprise agreement. The court had to consider whether the changes were so substantial that they rendered the Agreement unworkable and whether the parties had made a genuine attempt to negotiate a new agreement. Additionally, the FWC needed to assess if termination was in the best interests of the employees, considering their rights and protections under the Fair Work Act 2009.

The FWC found that the significant changes in the business environment, particularly the adverse effects of the COVID-19 pandemic, had indeed rendered the Agreement unworkable. The court recognised the unprecedented nature of the pandemic and its severe impact on the construction industry. The FWC also found that the parties had made a genuine attempt to negotiate a new agreement, but these efforts were ultimately unsuccessful. Considering the best interests of the employees, the FWC determined that termination of the Agreement was appropriate, given the circumstances. The court emphasised the need for flexibility and adaptability in enterprise agreements to navigate extraordinary challenges such as those posed by the pandemic.

The FWC ordered the termination of the CCM Group Australia Enterprise Agreement 2013, effective from a specified date. This decision allowed the parties to negotiate a new agreement that better reflected the current business environment. The termination also provided a pathway for addressing the economic realities faced by the industry, including the need to adapt to the post-pandemic landscape.

SRG Services (Western) Pty Ltd T/A SRG

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established