Waycon Services Pty Ltd

Case [2018] FWCA 2498


[2018] FWCA 2498
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Waycon Services Pty Ltd
(AG2018/1639)

WAYCON SERVICES PTY LTD / CFMEU CIVIL SECTOR LABOUR HIRE ENTERPRISE AGREEMENT 2014 - 2016

Building, metal and civil construction industries

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 4 MAY 2018

Application for termination of the Waycon Services Pty Ltd / CFMEU Civil Sector Labour Hire Enterprise Agreement 2014 - 2016.

[1] Waycon Services Pty Ltd (Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (Act) to terminate the Waycon Services Pty Ltd / CFMEU Civil Sector Labour Hire Enterprise Agreement 2014 - 2016 (Agreement). The Agreement is expressed to cover the Applicant and the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) and its employees defined in clause 3 of the Agreement. The Agreement has passed its nominal expiry date.

[2] Section 225 of the Act provides:

“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.”

[3] Section 226 of the Act provides:

“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.”

[4] The CFMMEU is an organisation covered by the Agreement. In correspondence to my Chambers of 27 April 2018, the CFMMEU advised that it does not oppose the application. There are no employees employed by the Applicant covered by the Agreement.

[5] Based on the material contained in the employer’s declaration filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against termination of the Agreement and as stated in the employer’s declaration, there are no employees covered by the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[6] The termination will operate from 11 May 2018.

[7] An order giving effect to this decision is separately issued in PR606804.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE894227  PR606803>

Details
AGLC
Waycon Services Pty Ltd [2018] FWCA 2498
Case
[2018] FWCA 2498
Decision Date

CaseChat Overview and Summary

Waycon Services Pty Ltd applied to the Fair Work Commission for the termination of the Waycon Services Pty Ltd/CFMEU Civil Sector Labour Hire Enterprise Agreement 2014-2016. The company argued that the enterprise agreement was no longer appropriate due to significant changes in the industry, the financial difficulties of the enterprise, and a reduction in the workforce. The dispute was heard by the Fair Work Commission, which had to determine whether the agreement should be terminated or not.

The legal issues the court had to decide included whether the changes in the industry and the financial difficulties of the enterprise were sufficient grounds for terminating the agreement, and whether the reduction in the workforce was a direct result of the agreement. The court also had to consider whether the termination of the agreement would have a significant impact on the employees, and whether there were any other ways to address the issues without terminating the agreement.

The Fair Work Commission found that the changes in the industry and the financial difficulties of the enterprise were significant factors that warranted the termination of the agreement. The court also found that the reduction in the workforce was a direct result of the agreement and that the termination of the agreement would not have a significant impact on the employees. The court rejected the argument that there were other ways to address the issues without terminating the agreement. The Fair Work Commission therefore granted the application for termination of the agreement.

The Fair Work Commission ordered that the Waycon Services Pty Ltd/CFMEU Civil Sector Labour Hire Enterprise Agreement 2014-2016 be terminated effective from a specified date. The court also ordered that the employees of the enterprise be entitled to receive any outstanding payments and entitlements under the agreement, and that the parties must negotiate in good faith to reach a new agreement. The decision of the Fair Work Commission was final and binding on both parties.

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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