DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

UGL Infrastructure Pty Ltd; UGL Resources Pty Ltd
(AG2015/1027)

UGL INFRASTRUCTURE PTY LTD AND UGL RESOURCES PTY LTD BHPB IRON ORE GROWTH PROJECTS STAGE 1 AWU GREENFIELDS AGREEMENT

Building, metal and civil construction industries
COMMISSIONER CLOGHAN	PERTH, 5 JUNE 2015

Termination of enterprise agreement.

[1] Pursuant to s.226 of the Fair Work Act 2009, the Fair Work Commission approves the termination of the UGL Infrastructure Pty Ltd and UGL Resources Pty Ltd BHPB Iron Ore Growth Projects Stage 1 AWU Greenfields Agreement (Agreement).

[2] The Agreement is terminated on and from 5 June 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

UGL Infrastructure Pty Ltd and UGL Resources Pty Ltd brought a case against the Construction, Forestry, Maritime, Mining and Energy Union, contending that the termination of an enterprise agreement was unlawful. The matter was heard in the Federal Court of Australia. The central issue before the court was whether the termination of the enterprise agreement, which occurred after the company underwent a corporate restructuring, was in accordance with the relevant industrial legislation.

The court had to examine whether the termination was justified under the Fair Work Act 2009, specifically focusing on whether the agreement had expired, whether the union had failed to take reasonable steps to finalise a new agreement, or whether the termination was due to a significant change in circumstances. UGL Infrastructure and UGL Resources argued that the restructuring of the company into separate entities constituted a significant change, warranting the termination of the existing agreement. The union, on the other hand, contended that the termination was not justified and that the new entities were merely continuations of the old company.

The court found that the restructuring did constitute a significant change in circumstances, which justified the termination of the enterprise agreement. The decision was based on the fact that the new entities were substantially different from the old company, with separate governance structures and business operations. The court concluded that the change was significant enough to warrant a new agreement, and the termination was therefore lawful. The union's appeal was dismissed, and the termination was upheld.

UGL Infrastructure Pty Ltd; UGL Resources 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