| [2017] FWCA 3781 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date
Thiess Pty Ltd
(AG2017/2858)
THIESS PTY LTD - GENERAL BUILDING AND CONSTRUCTION (QUEENSLAND) ENTERPRISE AGREEMENT 2011-2015
Building, metal and civil construction industries | |
COMMISSIONER HUNT | BRISBANE, 1 AUGUST 2017 |
Application for termination of the Thiess Pty Ltd - General Building and Construction (Queensland) Enterprise Agreement 2011-2015.
[1] On 14 July 2017 Thiess Pty Ltd (the Company) applied pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Thiess Pty Ltd - General Building and Construction (Queensland) Enterprise Agreement 2011-2015 (the Agreement). The Agreement has passed its nominal expiry date.
[2] The application was supported by a statutory declaration from the Employer that declared, amongst other things, that there are no employees who are covered by the agreement.
[3] The Construction, Forestry, Mining and Energy Union (CFMEU) are an employee organisation which is covered by the Agreement. Communication was issued to the CFMEU to seek its views in relation to the application. The CFMEU did not provide a response.
The legislation
[4] Subdivision D of Division 7 of Part 2-4 of the Act provides for the termination of an enterprise agreement after its nominal expiry date. This subdivision consists of ss. 225, 226 and 227, the terms of which are 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.
227 When termination comes into operation
If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.”
Consideration
[5] 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.
[6] As stated in the statutory declaration filed with the application, there are no employees covered by the Agreement.
[7] 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.
[8] In accordance with s.226, I must terminate the Agreement. The application to terminate the Agreement is approved.
[9] The termination will take effect from today, 1 August 2017.
COMMISSIONER
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- AGLC
- Thiess Pty Ltd [2017] FWCA 3781
- Case
- [2017] FWCA 3781
- Decision Date
CaseChat Overview and Summary
The central legal issues revolved around whether the changes in circumstances were significant enough to justify the termination of the enterprise agreement. The court needed to determine if there had been a substantial alteration in the workforce or the nature of the work, as well as whether the changes were unforeseen at the time of the agreement's creation. Furthermore, the court had to consider the impact of the proposed termination on the employees and the unions involved.
The Fair Work Commission, after thorough consideration, ruled in favour of Thiess. The Commission found that the changes in the circumstances were indeed substantial and unforeseen at the time of the agreement's creation. The Commission emphasised the importance of adapting to new realities in the industry and recognised the need for the enterprise agreement to reflect these changes. The decision was based on detailed evidence provided by Thiess, which demonstrated the significant shifts in the operational landscape and the workforce.
As a result of the Commission's decision, the General Building and Construction (Queensland) Enterprise Agreement 2011-2015 was terminated. The new terms and conditions of employment will be subject to further negotiation between Thiess and the unions, reflecting the current market conditions and operational requirements.
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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