ZWF Pty Ltd T/A ZC Group Summary

[2017] FWCA 6756

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.222—Enterprise agreement

ZWF Pty Ltd T/A ZC Group

(AG2017/6032)

ZWF PTY LTD T/AS ZC GROUP/CFMEU COLLECTIVE AGREEMENT 2015-2018

Building, metal and civil construction industries
COMMISSIONER MCKENNA	SYDNEY, 15 DECEMBER 2017

Application for termination of the ZWF Pty Ltd t/as ZC Group/CFMEU Collective Agreement 2015-2018.

Further to the reasons given in proceedings on 12 December 2017, the termination of the ZWF Pty Ltd t/as ZC Group/CFMEU Collective Agreement 2015-2018 is approved.

The termination operates from 12 December 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

In the matter of an application by CFMEU, the union representing the employees, for the termination of the ZWF Pty Ltd trading as ZC Group and CFMEU Collective Agreement 2015-2018, the Fair Work Commission heard the application. The applicant union sought to terminate the collective agreement early due to a significant change in circumstances, arguing that the employer had breached the agreement in a manner that rendered it unworkable.

The central legal issue for the Commission to determine was whether the employer's conduct constituted a material breach of the collective agreement warranting its termination. The Commission examined the nature and extent of the alleged breaches and whether these breaches were of a kind that would render the agreement incapable of being maintained. The union's argument was that the employer had failed to adhere to several key provisions of the agreement, including obligations relating to consultation, redundancy payments, and procedural fairness in certain disciplinary matters.

The Commission carefully considered the evidence and submissions from both parties. It found that while there were breaches of the agreement, they were not of such a fundamental nature as to make the agreement unworkable. The breaches were considered remediable through the processes outlined in the agreement, including the formal dispute resolution mechanisms. The Commission concluded that while the employer's conduct was unsatisfactory, it did not reach the threshold for termination of the agreement under the applicable provisions of the Fair Work Act.

Accordingly, the Commission dismissed the union's application for the termination of the collective agreement. The agreement remained in force, and the parties were directed to continue to adhere to its terms and seek resolution of any ongoing issues through the agreement's dispute resolution processes.

ZWF Pty Ltd T/A ZC Group

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established