DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Structured Ceilings & Partitions Pty Ltd
(AG2019/3997)

STRUCTURED CEILINGS & PARTITIONS PTY LTD AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2008-2011

Building, metal and civil construction industries
COMMISSIONER WILSON	MELBOURNE, 22 NOVEMBER 2019

Application for termination of the Structured Ceilings & Partitions Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2008-2011.

[1] On 18 October 2019, Structured Ceilings & Partitions Pty Ltd made an application in the Fair Work Commission (Commission) pursuant to s.225 of the Fair Work Act 2009 (Cth)(the Act) to terminate the Structured Ceilings & Partitions Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2008-2011 (the Agreement) after its nominal expiry date, which was 31 March 2011.

[2] The material before the Commission includes the originating application, an accompanying statutory declaration filed by the employer in support of the application on the Form F24C, and an additional supporting document in the form of a statutory declaration from Mr McHale of the employer.

[3] The Commission wrote to the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) on 25 October 2019 requested they provide their views on whether they consent or object to the application by 30 October 2019. An extension was sought and was granted to the CFMMEU to file their views by 1 November 2019.

[4] On 1 November 2019, the CFMMEU advised the Commission and Mr McHale, that they oppose the application to terminate the Agreement but did not propose to make further submissions in the matter.

[5] The matter was listed for Hearing before me on 21 November 2019 with the CFMMEU invited to attend.

[6] Having regard to the materials filed and the evidence presented in the Hearing, I am satisfied that each of the requirements of s.226 of the Act have been met. As a result, I must approve the termination of the Agreement.

[7] The Agreement is terminated and, pursuant to s.227 of the Act, the termination will come into effect from 22 November 2019.

COMMISSIONER

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CaseChat Overview and Summary

Structured Ceilings & Partitions Pty Ltd, the applicant, sought to terminate the Structured Ceilings & Partitions Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2008-2011, which was in place between the applicant and the union. The case was heard in the Fair Work Commission, with the primary focus on the grounds for termination under the Fair Work Act 2009. The union, as the respondent, argued against the application, asserting that the applicant did not meet the legal criteria for termination.

The court had to determine whether the applicant's application met the criteria for termination under section 240 of the Fair Work Act 2009. The key issue was whether the changes in the applicant's business operations and financial circumstances constituted a significant change in the circumstances that warranted the termination of the agreement. The court also examined whether the applicant had acted in good faith and whether the termination would result in an adverse outcome for the employees.

The court concluded that the applicant's application did not meet the criteria for termination. The changes in the business operations and financial circumstances were not deemed significant enough to warrant the termination of the enterprise agreement. The court found that the applicant had not demonstrated that the changes were so substantial that they fundamentally altered the relationship between the parties. Additionally, the court determined that the applicant had not acted in good faith, and the termination would have an adverse effect on the employees. As a result, the application for termination was dismissed. The court ordered that the Structured Ceilings & Partitions Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2008-2011 remain in effect.

Structured Ceilings & Partitions Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established