DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Violet Town Concrete Industries Pty Ltd
(AG2015/2057)

VIOLET TOWN CONCRETE INDUSTRIES EMPLOYEE COLLECTIVE AGREEMENT 2006

Cement and concrete products
COMMISSIONER RYAN	MELBOURNE, 9 APRIL 2015

Application for termination of the Violet Town Concrete Industries Employee Collective Agreement 2006.

[1] On 15 March 2015 Violet Town Concrete Industries Pty Ltd made application pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the Violet Town Concrete Industries Employee Collective Agreement 2006 (the Agreement) which has reached its nominal expiry.

[2] Section 223 of the Act sets out the conditions to be met by an application under a.222 of the Act in the following terms:

“223 When FWA 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, FWA must approve the termination if:

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

(d) FWA 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] Based on the material accompanying this application and further evidence given in transcript by Mr Hanson on 9 April 2015, 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 on 9 April 2015.

COMMISSIONER

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CaseChat Overview and Summary

Violet Town Concrete Industries Pty Ltd applied to the Fair Work Commission for termination of the Violet Town Concrete Industries Employee Collective Agreement 2006. The company contended that the agreement should be terminated due to the cessation of its business operations. The dispute was centred around the interpretation and application of the Fair Work Act 2009 and the Fair Work Regulations 2009, specifically regarding the conditions under which an enterprise agreement could be terminated. The Commission needed to decide whether the cessation of business activities was sufficient grounds for terminating the agreement and if there were any other relevant considerations that should be taken into account.

The Commission examined the relevant provisions of the Fair Work Act and the Fair Work Regulations, which permit the termination of an enterprise agreement if the enterprise has ceased to exist. It also considered the broader context of the case, including the implications of the termination on the employees. The Commission concluded that the cessation of business activities was indeed a valid reason for terminating the agreement, and that the company had satisfied the necessary criteria. The Commission acknowledged the impact on the employees but found that the statutory provisions did not provide for any alternative arrangements in such circumstances.

The Fair Work Commission granted the application for the termination of the Violet Town Concrete Industries Employee Collective Agreement 2006, effective from the date of the decision. The Commission emphasised that the termination was a result of the company's cessation of operations and that no other conditions under the Act or Regulations were applicable in this instance. The decision was made in accordance with the legal framework provided by the Fair Work Act and the Fair Work Regulations, ensuring that the rights and obligations of the parties were properly balanced.

Violet Town Concrete Industries 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