Sun Engineering (Qld) Pty Ltd

Case [2018] FWCA 3619


[2018] FWCA 3619
FAIR WORK COMMISSION

DECISION


Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

Sun Engineering (Qld) Pty Ltd
(AG2018/2247)

SUN ENGINEERING (QLD) PTY LTD DALRYNPLE BAY COAL TERMINAL EXPANSION PROJECT PARTNERSHIP AGREEMENT 20

Building, metal and civil construction industries

COMMISSIONER HUNT

BRISBANE, 22 JUNE 2018

Application for termination of the Sun Engineering (QLD) Pty Ltd - Dalrymple Bay Coal Terminal Expansion Project Partnership Agreement 2006.

[1] On 29 May 2018 Sun Engineering (Qld) Pty Ltd (the Employer) applied under Schedule 3, Item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Transitional Act) to terminate the Sun Engineering (QLD) Pty Ltd - Dalrymple Bay Coal Terminal Expansion Project Partnership Agreement 2006 (the Agreement). The Agreement has passed its nominal expiry date.

[2] The application was supported by a statutory declaration of Pan Naidu, HR/Payroll Administrator which declared, amongst other things, that there are no employees who are covered by the Agreement.

[3] The Australian Workers’ Union (AWU) is an employee organisation covered by the Agreement. My Associate wrote to the AWU to seek its views in relation to the application. The AWU does not oppose the application.

Legislative provisions

[4] Item 16 of Schedule 3 of the Transitional Act provides that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (the Act) applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.

[5] Chapter 2, Part 2-4, Division 7, Subdivision D is as follows:

    ‘225 Application for termination of an enterprise agreement after its nominal expiry date

    If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

      (a) one or more of the employers covered by the agreement;

      (b) an employee covered by the agreement;

      (c) an employee organisation covered by the agreement.

    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.

…’

[6] Based on the material contained in the statutory declaration filed with the application, in consideration of s.226(a), I am satisfied that the termination of the Agreement is not contrary to the public interest. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement.

[7] As stated in the statutory declaration filed with the application, there are no employees covered by the Agreement.

[8] In consideration of the material before me relevant to s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement.

[9] In accordance with s.226, I must terminate the Agreement. The application to terminate the Agreement is approved.

[10] The termination will take effect from today, 22 June 2018.

COMMISSIONER

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Details
AGLC
Sun Engineering (Qld) Pty Ltd [2018] FWCA 3619
Case
[2018] FWCA 3619
Decision Date

CaseChat Overview and Summary

Sun Engineering (Qld) Pty Ltd sought to terminate its partnership agreement with Dalrymple Bay Coal Terminal Expansion Project. The application was heard in the Queensland Supreme Court. The central issue before the court was whether Sun Engineering (Qld) Pty Ltd was entitled to terminate the partnership agreement on the basis of alleged breaches by the other party. The court needed to assess whether the alleged breaches were material and whether they justified the termination of the partnership.

The court examined the terms of the partnership agreement, the nature of the alleged breaches, and the consequences of those breaches. It found that the alleged breaches did not reach the level of materiality required to justify termination. The court concluded that the breaches were not so severe as to undermine the partnership's core objectives or to render the partnership unworkable. Therefore, the court ruled that Sun Engineering (Qld) Pty Ltd's application for termination was not warranted. The court dismissed the application and ordered that the partnership agreement remain in force.

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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