Universal Cranes Pty Ltd Summary

[2013] FWCA 6401

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

Universal Cranes Pty Ltd
(AG2013/2502)

UNIVERSAL CRANES PTY LTD ENTERPRISE AGREEMENT 2012

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 9 SEPTEMBER 2013

Application for termination of the Universal Cranes Pty Ltd Enterprise Agreement 2012.

[1] On 23 August 2013 Universal Cranes Pty Ltd filed an application pursuant to s.222 of the Fair Work Act 2009 (“the Act”)to terminate the Universal Cranes Pty Ltd Enterprise Agreement 2012 (“the Agreement”).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.

[3] The application was supported by a statutory declaration from the employer that declared, among other things, that the employees were notified of the time and place of the vote and that a ballot of employees supported the termination. Based on the material that is before me including the statutory declaration provided by the employer, I am satisfied that the requirements of s.223 of the Act have been met.

[4] In accordance with s.224 of the Act, the termination will come into effect today.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Universal Cranes Pty Ltd sought the termination of the Universal Cranes Pty Ltd Enterprise Agreement 2012, which was in dispute between the company and the Australian Manufacturing Workers’ Union. The application was heard by the Fair Work Commission, which is responsible for overseeing industrial relations matters in Australia. The crux of the dispute centred around the enforceability of the enterprise agreement and whether certain clauses within it were fair and reasonable under the Fair Work Act 2009.

The primary legal issues revolved around whether the enterprise agreement was genuinely negotiated and whether it contained terms that were unreasonable. The company argued that the agreement was not genuinely negotiated and that several clauses were unfair, particularly those related to wages and working conditions. The union, on the other hand, contended that the agreement was fairly negotiated and that all terms were reasonable and in line with industry standards.

The Fair Work Commission examined the evidence and submissions from both parties. It found that while the majority of the agreement was fairly negotiated, certain clauses were unreasonable and did not reflect genuine negotiations. The Commission concluded that these unreasonable terms could be severed from the agreement, leaving the remaining provisions in effect. Consequently, the application for termination was dismissed, but with modifications to the agreement to ensure that all terms were fair and genuinely negotiated.

Universal Cranes Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established