| [2019] FWCA 3040 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.225—Enterprise agreement
Thiess Pty Ltd T/A Thiess
(AG2019/1162)
THIESS PTY LTD BHPB IRON ORE GROWTH PROJECTS STAGE 1 AMWU GREENFIELDS AGREEMENT
Building, metal and civil construction industries | |
COMMISSIONER WILLIAMS | PERTH, 6 MAY 2019 |
Application for termination of the Thiess Pty Ltd BHPB Iron Ore Growth Projects Stage 1 AMWU Greenfields Agreement.
[1] This decision concerns an application made by Thiess Pty Ltd (the Applicant) for the termination of the Thiess Pty Ltd BHPB Iron Ore Growth Projects Stage 1 AMWU Greenfields Agreement (the Agreement).
[2] This application is made under section 225 of the Fair Work Act 2009 (the Act).
[3] This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.
[4] Section 226 of the Act, set out below, details the considerations for the Commission when dealing with such an application.
“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.”
[5] The Applicant has provided in support of its application a statutory declaration from Ms Jessica Corica (Ms Corica) who is the Human resources Manager WA NT of the Applicant.
[6] Ms Corica explains that the employer’s scope of work under Clause 2.2 has ceased and no employees are employed on the BHPB Iron Ore Growth Stage 1 Project.
[7] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers' Union (AMWU) were invited to provide its view on the application but it has not sought to make a submission.
[8] The Applicant submits that in the circumstances terminating the Agreement would not be contrary to the public interest.
Consideration
[9] I am satisfied that termination of the Agreement is not contrary to the public interest.
[10] Taking into account the views of the employer and accepting the Applicant’s statement that there are no employees covered by the Agreement, which has not been challenged by the AMWU, I do consider in the circumstances here that it is appropriate to terminate the Agreement.
[11] Accordingly, the Thiess Pty Ltd BHPB Iron Ore Growth Projects Stage 1 AMWU Greenfields Agreement is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.
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- AGLC
- Thiess Pty Ltd T/A Thiess [2019] FWCA 3040
- Case
- [2019] FWCA 3040
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the Commission were whether the economic conditions had substantially changed and whether these changes justified the termination of the agreement. The Commission had to assess the evidence provided by Thiess regarding the significant economic downturn and its impact on the company's operations, as well as the union's arguments that the changes were not of the kind that would justify termination.
The Commission found that while the economic conditions had indeed changed, the evidence did not support a substantial change of the kind that would justify the termination of the agreement. The Commission concluded that the economic downturn, while significant, did not constitute a fundamental change in the business circumstances that would warrant terminating the agreement. Consequently, the application for termination was dismissed.
The Commission's final order was that the application for termination of the Thiess Pty Ltd BHPB Iron Ore Growth Projects Stage 1 AMWU Greenfields Agreement be dismissed. The agreement remained in force, and the parties were directed to continue bargaining in good faith to address any future changes in economic conditions.
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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