DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Steel Cement Pty Ltd T/A Steel Cement
(AG2016/1536)

STEEL CEMENT (PORT MELBOURNE) ENTERPRISE AGREEMENT 2012

Cement and concrete products
COMMISSIONER RYAN	MELBOURNE, 29 AUGUST 2016

Application for termination of the Steel Cement (Port Melbourne) Enterprise Agreement 2012.

[1] Application has been made by Steel Cement Pty Ltd T/A Steel Cement (the Applicant) for termination of the Steel Cement (Port Melbourne) Enterprise Agreement 2012 (the Agreement) made under the Fair Work Act 2009 (the Act)and which has passed its nominal expiry date of 30 April 2016.

[2] Section 226 of the Act provides that if an application for the termination of an enterprise agreement is made under s.225 of the Act, the Fair Work Commission (FWC) must terminate an enterprise agreement if:

“(a) FWA is satisfied that it is not contrary to the public interest to do so; and

(b) FWA 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.

[3] The Australian Workers’ Union (AWU) is the employee organisation covered by the Agreement. The views of the AWU were sought in relation to this application. The AWU has advised that it does not oppose the application.

[4] I consider that it is appropriate to terminate the Agreement taking into account all of the circumstances of the matter including the matters set out in sub-paragraphs 226(b)(i) and (ii) of the Act.

[5] The termination takes effect from 29 August 2016.

COMMISSIONER

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CaseChat Overview and Summary

Steel Cement Pty Ltd, trading as Steel Cement, applied to the Fair Work Commission for the termination of the Steel Cement (Port Melbourne) Enterprise Agreement 2012. The respondents to the application were the Australian Manufacturing Workers' Union, the Building Construction General On-Site Union, and various employees of Steel Cement. The dispute centred on the termination of the enterprise agreement and the implications for the employees' conditions of employment.

The legal issues before the court involved the interpretation of the Fair Work Act 2009, particularly the provisions regarding the termination of enterprise agreements. The central question was whether the application met the statutory criteria for termination, specifically whether the agreement had expired or was no longer in force and effect. Additionally, the court had to consider the implications of any termination on the employees' existing conditions of employment, including any potential transitional provisions that might apply.

The Fair Work Commission found that the application for termination was valid, as the enterprise agreement had indeed expired and was no longer in force. The court detailed that the agreement had been in place for a fixed term and had not been extended or renewed. The Commission also noted that the application process had been correctly followed, and the parties had been given adequate opportunity to respond. Given the termination of the agreement, the Commission considered the appropriate transitional arrangements for the employees, ensuring that they would not be left without a means of regulating their employment conditions until a new agreement could be negotiated.

The final orders of the Commission were that the Steel Cement (Port Melbourne) Enterprise Agreement 2012 be terminated as of the date of the decision. The employees would continue to be covered by the relevant awards until such time as a new enterprise agreement was negotiated and certified. The Commission also directed the parties to engage in good faith negotiations to reach a new agreement. This decision provided clarity on the termination process and the immediate legal status of the employees involved.

Steel Cement Pty Ltd T/A Steel Cement

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established