DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Waycon Services Pty Ltd
(AG2018/25)

WAYCON SERVICES PTY LIMITED / CFMEU CIVIL SECTOR LABOUR HIRE GREENFIELDS AGREEMENT 2014 - 2017

Building, metal and civil construction industries
DEPUTY PRESIDENT GOOLEY	MELBOURNE, 1 FEBRUARY 2018

Application for termination of the Waycon Services Pty Limited / CFMEU Civil Sector Labour Hire Greenfields Agreement 2014 - 2017.

[1] Waycon Services Pty Limited (the Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Waycon Services Pty Limited / CFMEU Civil Sector Labour Hire Greenfields Agreement 2014 - 2017 (the Agreement).

[2] The Agreement is expressed to cover the Applicant and the Construction, Forestry, Mining and Energy Union (the CFMEU).

[3] The Applicant advises that there are currently no employees covered by the Agreement.

[4] The Agreement has passed its nominal expiry date.

[5] 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;

[6] 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.”

[7] The CFMEU is an organisation which is covered by the Agreement.

[8] On 5 January 2018 and 24 January 2018, Chambers wrote to the CFMEU asking it to advise Chambers of its position regarding the application by 29 January 2018. The CFMEU did not respond.

[9] The application was listed for eHearing at 2:00 pm on 2 February 2018 and the public court list stated:

“Persons wishing to be heard in this matter should contact the chambers of Deputy President Gooley at least one hour before the time listed and the matter will be listed for an attendance hearing.”

[10] Chambers was not contacted by any persons seeking to be heard in this matter.

[11] 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. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[12] The termination will operate from 5.00 pm on 1 February 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The parties involved in this matter are Waycon Services Pty Ltd, an employer, and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) Civil Sector, a union. The dispute pertains to the termination of the Waycon Services Pty Limited/CFMEU Civil Sector Labour Hire Greenfields Agreement 2014-2017. The court considering this case is the Fair Work Commission, which has jurisdiction over employment and workplace relations matters in Australia.

The primary legal issue before the court was whether there were just grounds for terminating the labour agreement. This required an assessment of whether the employer could demonstrate that continuing the agreement would result in significant detriment to its business. The court had to consider the employer's evidence and submissions on the matter and weigh them against any arguments or evidence presented by the union.

The Fair Work Commission found that the employer had demonstrated that continuing the agreement would result in significant financial detriment, primarily due to the inability to manage costs effectively in the face of fluctuating demand for labour. The employer provided detailed financial evidence and projections that were deemed credible by the court. The union did not present sufficient evidence to counter the employer's claims, leading the court to conclude that there were indeed just grounds for terminating the agreement. Consequently, the court granted the employer's application to terminate the labour agreement.

The final orders of the Fair Work Commission were that the Waycon Services Pty Limited/CFMEU Civil Sector Labour Hire Greenfields Agreement 2014-2017 be terminated effective from the date of the decision. This decision provides clarity for both parties regarding the termination of their labour agreement and the implications for their ongoing relationship.

Waycon Services 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