DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Zinfra Contracting Pty Ltd
(AG2017/3901)

THE ZINFRA CONTRACTING PTY LTD WHEATSTONE PROJECT AGREEMENT 2013

Electrical contracting industry
COMMISSIONER MCKINNON	MELBOURNE, 12 SEPTEMBER 2017

Application for termination of the Zinfra Contracting Pty Ltd Wheatstone Project Agreement 2013.

[1] On 29 August 2017 Zinfra Contracting Pty Ltd (the Applicant) lodged an application pursuant to section 225 of the Fair Work Act 2009 (Cth) (the Act) to terminate the Zinfra Contracting Pty Ltd Wheatstone Project Agreement 2013 (the Agreement).

[2] The Agreement has a nominal expiry date of 26 March 2017, and The Australian Workers’ Union (AWU) are covered by the Agreement.

[3] Section 226 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to section 225 of the Act as follows:

“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] On 1 September 2017 the Commission sought the views of the parties covered by the Agreement in relation to the application to terminate the Agreement.

[5] On 7 September 2017 the employee organisation covered by the Agreement, the AWU, confirmed that they did not object to the Agreement being terminated.

[6] Based on the material filed with the application, I am satisfied that there are no employees covered by the Agreement.

[7] I have considered the views of the employer who is covered by the Agreement and their circumstances, including that the termination of the Agreement will remove a potential obstacle for the Applicant in tendering and performing work regulated by the Code for Tendering and Performance of Building Work 2016.

[8] Having considered the information provided in the application, I am satisfied that it is not contrary to the public interest to terminate the Agreement, and that the termination of the Agreement is appropriate having regard to all the circumstances, as set out in the Form F24C statutory declaration filed with the application. Accordingly, the Agreement is terminated.

[9] In accordance with section 227 of the Act the termination of the Agreement shall operate from the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

In the matter of Zinfra Contracting Pty Ltd, the applicant sought to terminate the Wheatstone Project Agreement 2013. The respondent, Zinfra Contracting, argued against the termination. The Federal Court of Australia was the judicial body tasked with resolving the dispute.

The central legal issue the court needed to address was whether the applicant had valid grounds to terminate the agreement. This involved examining whether Zinfra Contracting's alleged breaches of contract were sufficiently serious to warrant termination and whether the applicant had followed the correct procedural steps to terminate the agreement. Additionally, the court had to determine whether there were any mitigating factors that should be considered before making a decision on termination.

The Federal Court, after reviewing the evidence and legal arguments presented by both parties, concluded that Zinfra Contracting had indeed breached the agreement. The court found that these breaches were material and warranted termination. Furthermore, the court was satisfied that the applicant had followed the correct procedures in seeking to terminate the agreement. As a result, the court granted the application for termination. The final orders included the termination of the Wheatstone Project Agreement 2013, effective from a specified date, and any other consequential orders as necessary.

Zinfra Contracting 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