AG2007/614, Transcript of Proceedings [2007] AIRCTrans 681 (12 December 2007)

TRANSCRIPT OF PROCEEDINGS

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Workplace Relations Act 1996 17863-1

DEPUTY PRESIDENT IVES

AG2007/614 AG2007/616

s.170MH -prereform Act - Application to terminate agreement (public interest)
Skilled Group Pty Ltd
and
Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union
(AG2007/614)

s.170MH -prereform Act - Application to terminate agreement (public interest)
Skilled Group Pty Ltd
and
Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2007/616)

MELBOURNE

9.59AM, FRIDAY, 30 NOVEMBER 2007

PN1

MS S BONAVIA: Good morning, your Honour. Initially I actually want to just thank you for rescheduling the hearing, given my illness on the Monday, so I do appreciate the Commission accommodating that re-arrangement. So in terms of appearances, I seek leave to appear for the Australian Industry Group on behalf of the Skilled Group Limited, together with MR P BOROBOKAS, group manager workplace relations, of the company.

PN2

THE SENIOR DEPUTY PRESIDENT: Thanks, Ms Bonavia.

PN3

What are before me are two applications made pursuant to section 170MH of the Workplace Relations Act as it was prior to 27 March 2006. Those applications have been made in accordance with schedule 7 Part II Division (2)(1)(k) of the Act which provides for the continuing operation of section 170MH.

PN4

The Commission's role is essentially threefold in respect of applications of this nature. What is required of the Commission first of all is to take such steps as it considers appropriate to obtain the views of persons bound by the agreement about whether it should be terminated.

PN5

To that end, Ms Bonavia, I issued some directions to the employer with respect to both applications.

PN6

I will come to you in just a moment, Mr Terzic.

PN7

Can you advise me whether those directions have been complied with?

PN8

MS BONAVIA: Yes, they have been, your Honour, with my client and Mr Barry Terzic of the AMWU, who is in attendance today. On the basis that no employees are currently covered by the agreement, there were no employees to notify of the hearing being listed.

PN9

THE SENIOR DEPUTY PRESIDENT: That's the case with both agreements?

PN10

MS BONAVIA: No, that's not correct, your Honour. In relation to the CEPU agreement, which is the plumbers agreement, which is AG2007616 there is one employee who is covered by that agreement. But the union has been notified as well as the employee and I also have letters to tender to the Commission.

PN11

THE SENIOR DEPUTY PRESIDENT: That's fine. We will come to that in due course.

PN12

MS BONAVIA: Yes.

PN13

THE SENIOR DEPUTY PRESIDENT: So in both instances, the directions issued by the Commission have been complied with?

PN14

MS BONAVIA: That's correct, your Honour.

PN15

THE SENIOR DEPUTY PRESIDENT: Yes, thank you.

PN16

A late entrance, so I had better take the appearances.

PN17

MR B TERZIC: I apologise for the late appearance. I seek leave to appear on behalf of the Automotive Food, Metals, Engineering, Printing and Kindred Industries Union.

PN18

THE SENIOR DEPUTY PRESIDENT: Yes. Okay, thanks Mr Terzic.

PN19

The second obligation of the Commission in applications such as this, having obtained the views of persons bound, about whether it should be terminated, is to consider whether or not terminating the agreements would be contrary to the public interest and that's something we will come to in due course.

PN20

Should the Commission consider that it is not contrary to the public interest to terminate the agreements then the Commission has a third duty under this section of the Act, is bound to terminate the agreement or agreements in this case.

PN21

So Ms Bonavia.

PN22

MS BONAVIA: Thank you, your Honour. By way of introduction, your Honour, I will just make some initial submissions to just provide you with some context. I'll be talking to the NMEOCA agreement in the first instance, so that's matter number AG2007/614.

PN23

Your Honour, this is an application to terminate the Skilled Engineering Limited Certified Labour Hire Construction Agreement 2000/2003, agreement number 808424, pursuant to section 170Mho of the pre-reform Act. Your Honour, just in terms of the core business that Skilled Group undertakes, predominantly it is a labour hire company which essentially provides supplementary labour to various industries. One of those industries, your Honour, includes the building and the construction industry. The company employs approximately 24,000 full time equivalent employees and your Honour, the company estimates that up to 2000 of those employees are specifically employed in the building and construction industry.

PN24

In relation to the agreement which is the subject of the application to terminate today, the nominal expiry date of that agreement is 31 March 2003. As indicated earlier, your Honour, there are no employees who are currently covered by this agreement. In terms of the reason for the application - - -

PN25

THE SENIOR DEPUTY PRESIDENT: Perhaps before you lead that, can you tell me why that's the case; why it's the case that there are no employees covered by the agreement? There must have been at some point in time, presumably?

PN26

MS BONAVIA: Yes. Initially my understanding is - and that's subject to me just clarifying instructions from Mr Borobokas - that there are no existing projects which are currently in place which invoke the operation of the NMEOCA agreement.

PN27

THE SENIOR DEPUTY PRESIDENT: I see.

PN28

MS BONAVIA: To that end there's no employees - - -

PN29

THE SENIOR DEPUTY PRESIDENT: I see. So the agreement only came into operation in the event that there was a particular project.

PN30

MS BONAVIA: That's right. That's correct. Yes.

PN31

THE SENIOR DEPUTY PRESIDENT: Is that correct?

PN32

MS BONAVIA: Yes, that's correct, your Honour. But I guess there might be some utility in me describing the nature of the way that Skilled Group actually operates. It's a supplementary labour hire company.

PN33

THE SENIOR DEPUTY PRESIDENT: Yes.

PN34

MS BONAVIA: So from time to time clients would approach Skilled and basically say, "We have a project. Can you supply XYZ labour?". Skilled Group would obviously then supply the labour according to those instructions and generally those projects would be alive for a particular duration; and then the supply of labour to the - - -

PN35

THE SENIOR DEPUTY PRESIDENT: All right. So in other words if Skilled put labour onto a particular site, those employees who would otherwise have been covered by the NMEOCA award on that site would then have been covered by this agreement; is that correct?

PN36

MS BONAVIA: Yes, that's right, your Honour.

PN37

THE SENIOR DEPUTY PRESIDENT: Right.

PN38

MS BONAVIA: If I've understood what you said, yes.

PN39

THE SENIOR DEPUTY PRESIDENT: Well, I probably should qualify that even further. Those employees of particular classifications that this agreement applied to, who would otherwise have been covered by NMEOCA; is that correct?

PN40

MR TERZIC: Perhaps I might help Ms Bonavia?

PN41

THE SENIOR DEPUTY PRESIDENT: Yes.

PN42

MR TERZIC: There would be one further qualification to that.

PN43

THE SENIOR DEPUTY PRESIDENT: Yes.

PN44

MR TERZIC: That is that there is not another agreement that would cove the works in question.

PN45

THE SENIOR DEPUTY PRESIDENT: Of course.

PN46

MR TERZIC: It's obvious but I think it should be said.

PN47

THE SENIOR DEPUTY PRESIDENT: Yes, okay. Thank you, Mr Terzic. Yes, that's what I thought. Okay, good.

PN48

MS BONAVIA: Yes, that's right. So in the event - yes.

PN49

THE SENIOR DEPUTY PRESIDENT: Yes.

PN50

MS BONAVIA: There's no other replacement agreement which would otherwise cover the terms and conditions of - - -

PN51

THE SENIOR DEPUTY PRESIDENT: So if Skilled had people to put onto a particular site, in the absence of this agreement being covered by NMEOCA in that particular classification then they would have been covered - or would be still covered - by this agreement?

PN52

MS BONAVIA: That's exactly right, your Honour.

PN53

THE SENIOR DEPUTY PRESIDENT: Yes.

PN54

MS BONAVIA: That will go to one of the issues in relation to the undertakings that we will also give in relation to that.

PN55

THE SENIOR DEPUTY PRESIDENT: Yes.

PN56

MS BONAVIA: Okay, are you happy for me to proceed forward?

PN57

THE SENIOR DEPUTY PRESIDENT: Yes, sure, go ahead.

PN58

MS BONAVIA: So in terms of the reason for the application and the basis on which it actually arises, essentially it comes out of a concern that this particular agreement does not comply with the national code of practice for the construction industry and the implementation guidelines hereafter known as the Code. Essentially it constitutes an obstacle to Skilled Group tendering for work to which the Code applies.

PN59

I guess further to that, your Honour, I've been contracted by Skilled Group to essentially do a workplace audit of all of their agreements in order to assess the extent to which those agreements comply with the code, and the NMEOCA has been identified as one of those agreements which contains prohibited content which is in breach of the requirements of the Code; and to that end we make application to have it terminated. So essentially really that's the basis on which the application arises in this context.

PN60

Further to that, your Honour, a substantial portion of the work conducted by the company is in fact caught by the Code. If I may, your Honour, just for the record just very quickly read section 2, The Application and Scope, which goes to that issue:

PN61

The Code is to be applied to the maximum practical extent to all building and construction work undertaken for and on behalf of the Australian Government and to construction projects to which the Australian Government has contributed funding.

PN62

Essentially Skilled undertakes construction work as defined by the Code so it undertakes construction work in the areas of defence.

PN63

THE SENIOR DEPUTY PRESIDENT: Okay, I understand the reason, Ms Bonavia.

PN64

MS BONAVIA: Yes.

PN65

THE SENIOR DEPUTY PRESIDENT: From the point of view of the Commission it's irrelevant to me whether or not the agreement is Code compliant in considering whether I should terminate it. It's not a consideration that the Commission needs to take into account.

PN66

MS BONAVIA: Sure.

PN67

THE SENIOR DEPUTY PRESIDENT: It certainly in my view doesn't impact the public interest and if it doesn't impact the public interest then it's not a consideration that is important to me.

PN68

MS BONAVIA: Sure. Okay.

PN69

THE SENIOR DEPUTY PRESIDENT: I understand the reasons that you are doing it, because this is not obviously the first one that has come before me on that basis, but it isn't a consideration for the Commission.

PN70

MS BONAVIA: Okay. So I guess just in terms then of the impact of Code compliance on the company, it's estimated that $85 million in Skilled Group revenue is actually related to federally funded projects. In summary that estimates 6.5 per cent of those - - -

PN71

THE SENIOR DEPUTY PRESIDENT: Again, let me say I understand that.

PN72

MS BONAVIA: Sure.

PN73

THE SENIOR DEPUTY PRESIDENT: That may well be the case however, it's really of little relevance as to whether or not I would choose to exercise the limited discretion that is before me. In fact there's very little discretion. The discretion, as I've already stated, revolves around whether I come to a view that it would be contrary to the public interest to terminate the agreement. The fact that the agreement is not Code compliant, in my view, doesn't raise any public interest issues and in and of itself would not form sufficient reason for the agreement to come - sorry, for the Commission to terminate the agreement.

PN74

The other thing is the test for the Commission is that it would not be contrary to the public interest, not that it is contrary to Skilled or anybody else's interests that the agreement is Code compliant or otherwise.

PN75

MS BONAVIA: Sure.

PN76

THE SENIOR DEPUTY PRESIDENT: So I know that that's likely the reason for the applications in the first instance but really, we probably just should stick to the requirements of the Act.

PN77

MS BONAVIA: Sure.

PN78

THE SENIOR DEPUTY PRESIDENT: The main one of those being the public interest requirement.

PN79

MS BONAVIA: Okay, and they are the subsequent submissions I am about to put on the record, your Honour.

PN80

THE SENIOR DEPUTY PRESIDENT: Okay.

PN81

MS BONAVIA: That information really was for providing contextual purposes.

PN82

THE SENIOR DEPUTY PRESIDENT: Yes.

PN83

MS BONAVIA: So in support of our application to terminate the agreement, your Honour, we say that termination of the agreement is not against the public interest. We have applied to have the agreement terminated in order to remove the current obstacles that I have identified previously. Negotiations are currently being held with the AMWU in order to re-negotiate a replacement agreement. I have instructions that it's uncertain at this stage when the negotiations will be completed.

PN84

Your Honour, I mentioned earlier that currently no employees are covered by the agreement. However we say that where the situation would arise that the company is required to engage employees in an activity that would ordinarily be covered by the NMEOCA agreement, the company gives the assurance that it will continue to apply Code compliant terms and conditions within the agreement. So all existing terms and conditions absent Code compliance.

PN85

THE SENIOR DEPUTY PRESIDENT: So if Skilled gets a contract tomorrow that would bring this agreement normally into operation, absent this agreement they undertake to provide those terms and conditions of the agreement that don't offend the Code?

PN86

MS BONAVIA: That's correct, your Honour.

PN87

THE SENIOR DEPUTY PRESIDENT: Right, and they undertake to do that presumably on an open ended basis?

PN88

MS BONAVIA: No, your Honour. This assurance is given until a new agreement is negotiated.

PN89

THE SENIOR DEPUTY PRESIDENT: Yes, okay.

PN90

MS BONAVIA: So there will never be a gap between - - -

PN91

THE SENIOR DEPUTY PRESIDENT: Well, let's hope that's not an open ended basis. Yes.

PN92

MS BONAVIA: Yes, but it will obviously continue until such time as a new agreement is struck between the parties.

PN93

THE SENIOR DEPUTY PRESIDENT: Yes, okay. Fine.

PN94

MS BONAVIA: Your Honour, we therefore say that the effect of termination of the agreement upon the wages and other conditions of any current, of which there are none, or any future employees, does not have any implications for the public interest. To that end no public interest considerations arise from the likely foreseeable consequences of termination of the agreement.

PN95

Moreover, your Honour, this is not a case where there is no applicable award. Upon termination of the agreement the underpinning award, which is the National Metals Engineering Onsite Construction Industry Award 1989 Part 1, would continue to apply. So there is a schema of safety nets which would apply if you were to find that there was justification to terminate the agreement.

PN96

If after obtaining the views of persons bound by the agreement, about whether it should be terminated, the Commission considers that it is not contrary to the public interest to terminate the agreement, the Commission must by order terminate the agreement. Skilled Group submits that in light of the foregoing the agreement be terminated by the Commission pursuant to section 170MH(3) of the pre-reform Act. If the Commission pleases that concludes my submission in relation to that agreement.

PN97

THE SENIOR DEPUTY PRESIDENT: Okay. I will hear from Mr Terzic before we move onto the other matter.

PN98

MR TERZIC: Your Honour, I start with what I think is a trite statement and that is that there's nothing we can do to stop the agreement being cancelled, that I know of. Having said that, just for the sake of the record I should indicate that I did seek to get instructions from the relevant office holders of the union and despite making requests in the usual way, I didn't finally get instructions. I just want to have that recorded on the record. But ultimately that doesn't count for much.

PN99

There's no blame to be apportioned to Skilled, they did give us proper notice and there was sufficient time for those instructions to be obtained. I think one can assume, from the lack of instructions being given, and especially given the undertaking as to there being no effective reduction in wages and conditions for employees who would otherwise be covered, it appears that everything that will flow from today is of, effectively, little consequence.

PN100

THE SENIOR DEPUTY PRESIDENT: Well I am, as you know, bound to take such steps as are practical to obtain the views of persons bound. The union is a person bound.

PN101

MR TERZIC: Yes.

PN102

THE SENIOR DEPUTY PRESIDENT: So what are you telling me that are the union's views?

PN103

MR TERZIC: Strictly speaking I'm unable to inform you.

PN104

THE SENIOR DEPUTY PRESIDENT: Right.

PN105

MR TERZIC: I just make the observation as an advocate and as a practitioner that there's probably nothing we could do to stop the order being issued, terminating the agreement.

PN106

THE SENIOR DEPUTY PRESIDENT: It is true that the way the relevant provision is framed, as you are no doubt aware, the views of parties bound by the agreement only end up being relevant to the extent that they impinge upon the public interest in any event. So the view of the union or the view of employees bound, for it to be relevant to the Commission's determination as to whether to terminate or not, must impinge upon the public interest.

PN107

MR TERZIC: Yes. I think if I was to say that I was instructed that we oppose the application, it wouldn't make any difference in the final scheme of things.

PN108

THE SENIOR DEPUTY PRESIDENT: Unless, of course, you could come up with some public interest reason as to why it shouldn't be terminated.

PN109

MR TERZIC: Within my sphere of thought I cannot think of any. There might be one but I don't think one will be forthcoming and, as I said, we have got no reason to blame Skilled for lack of notice. They did give us sufficient notice; I simply make that observation; I welcome the undertaking, that's a positive move by Skilled. I understand that the relevant office holders are engaged in negotiations with Skilled for a replacement agreement and we will work on that basis.

PN110

THE SENIOR DEPUTY PRESIDENT: All right. Thanks, Mr Terzic.

PN111

I will deal with this one to finality, Ms Bonavia. It probably is the best way to go forward. I have taken such steps as are appropriate to obtain the views of persons bound by the agreement, that being on the one hand the AMWU as a party bound to the agreement, and any employees whose employment is governed by the terms of the agreement. In respect of the latter I'm advised that there are no such employees so that aspect of obtaining people's views is relatively easy; and the union's views, to the extent that they have a view it has been put on the record by Mr Terzic.

PN112

The other issue that I must consider of course is whether or not it would be contrary to the public interest to terminate the agreement. There is one major issue there for the Commission to take account of and that is the circumstances under which employees who may otherwise be covered by this agreement would be left absent the agreement.

PN113

The circumstances are that there is a safety net award which would cover the employment of any persons that would otherwise have been covered by this agreement, and that is the National Metals Engineering Onsite Construction Industry Award 1989. That in itself likely takes care of public interest considerations but beyond that, the company has provided an undertaking. The undertaking is to the effect that any employees who it may employ who would otherwise have been governed by the terms of this agreement will receive such benefits of this agreement as are not contrary to the National Building Code and they will receive those benefits up until a point in time when that circumstance is replaced by a further agreement with the relevant union, being the AMWU.

PN114

So on that basis I am unable to come to any view that it would be contrary to the public interest to terminate the agreement. Absent such a view, then I am required by section 170MH(3) to terminate the agreement and pursuant to schedule 7 Part II Division 1(2)(1)(k). In accordance with section 170MH of the Act, the Skilled Engineering Limited Certified Labour Hire Construction Agreement 2000/2003 will be terminated. The order terminating the agreement will come into effect from today's date.

PN115

That particular matter is adjourned, so we can move on to the next one.

PN116

MR TERZIC: Your Honour, may I just make a brief request. The undertaking, as given and as noted by your Honour, is something that could be of some value to affected employees if events come to pass such that the undertaking might be called on. If there could be some sort of written record of the undertaking.

PN117

THE SENIOR DEPUTY PRESIDENT: There is. It's on the record.

PN118

MR TERZIC: Yes, if the transcript could be produced in the usual way by the Commission that would be greatly appreciated by the union and perhaps by Skilled too, for that matter.

PN119

THE SENIOR DEPUTY PRESIDENT: Yes.

PN120

All right, Ms Bonavia.

PN121

MS BONAVIA: Thank you, your Honour.

PN122

MR TERZIC: I might be excused from the bar table.

PN123

THE SENIOR DEPUTY PRESIDENT: Yes, that's fine thanks. I will note for the purposes of the record that the CEPU were advised of this matter today, the listing of the matter, and I understand were further advised by you, Ms Bonavia.

PN124

MS BONAVIA: Yes.

PN125

THE SENIOR DEPUTY PRESIDENT: So were aware that the matter was to be heard today and I simply note for the record that there is no appearance by anybody representing the CEPU.

PN126

MS BONAVIA: Thank you, your Honour. Would you just like me to proceed to my submissions, because I have already made appearances.?

PN127

THE SENIOR DEPUTY PRESIDENT: Yes, go ahead.

PN128

MS BONAVIA: I guess, your Honour, I will just cut to the chase in relation to my submissions in relation to this application, but again I will just provide an introduction in terms of some of the substantive issues.

PN129

This is application to terminate the Skilled Engineering Limited and CEPU Enterprise Agreement 2002/2005, agreement number 831085, pursuant to section 170MH of the pre-reform Act. Previously your Honour I described the core business that Skilled Group had essentially undertaken, in that it provides supplementary labour to various industries and this agreement which is the subject of the termination is one of those agreements which apply to that company.

PN130

In support of our application to terminate the agreement, your Honour, we say that termination of the agreement is not against - I beg your pardon, I need to just double track back there. I do apologise. The above pre-reform agreement has passed its nominal expiry date and that nominal expiry date was 31 October 2005. This agreement does currently cover one employee, employed to perform plumbing duties.

PN131

In support of our application to terminate the agreement, your Honour, we say that termination of the agreement is not against the public interest. We have applied obviously to terminate the agreement in order to remove the current obstacles in relation to the Code and I accept what you said that that is not a consideration that the Commission does need to take into account as to whether the public interest is satisfied. However, what I do want to be able to say is that the basis on which the termination is there demonstrates that it's not of any ill intent.

PN132

To that end, your Honour, the company gives the assurance that it will, in relation to the employee covered by the current agreement, continue to apply co-compliant terms and conditions within the agreement. Again, this should reflect the bona fides of the company and the absence of any ill intent that might - - -

PN133

THE SENIOR DEPUTY PRESIDENT: Does that include any other employees who may be employed?

PN134

MS BONAVIA: Absolutely your Honour, yes. So it's the same kind of scenario.

PN135

THE SENIOR DEPUTY PRESIDENT: Yes.

PN136

MS BONAVIA: In the event that we have an existing agreement where an existing current employee is covered by it, that employee will enjoy the same terms and conditions that are contained within that agreement, absent any co-compliant provisions.

PN137

THE SENIOR DEPUTY PRESIDENT: Yes.

PN138

MS BONAVIA: The alternative scenario, your Honour, whereby any future employees who might fall under the terms of that condition will equally enjoy the same terms and conditions that are contained in that agreement.

PN139

THE SENIOR DEPUTY PRESIDENT: Yes.

PN140

MS BONAVIA: The employee covered by this agreement has been advised that there will be no change to his terms and conditions. Your Honour, if I may tender a document, a letter that was sent to William Fleming.

EXHIBIT #AI1 LETTER SENT FROM SKILLED GROUP TO WILLIAM FLEMING

PN141

MS BONAVIA: Would you like me to talk of the substance of that letter, your Honour?

PN142

THE SENIOR DEPUTY PRESIDENT: Yes.

PN143

MS BONAVIA: In summary, your Honour, essentially it explains to the employee the basis on which, or the reason why, the termination is actually being terminated(sic) and further it goes on to explain the assurances that are given to the employee on behalf of, or by the company on behalf of the employee. It essentially goes to the fact that the terms and conditions will be unaffected if this application to terminate the agreement is successful.

PN144

We further went on to advise, as per your instructions your Honour, or the Commission's instructions, to notify the employee of the details of the hearing, although they have subsequently changed. But the employee was also, as far as I understand, had been notified by the union of that change also.

PN145

Your Honour, we therefore say that the effect of termination of the agreement upon the wages and other conditions of the employee does not have any implications for the public interest. To that end, no public interest considerations arise from the likely foreseeable consequences of termination of the agreement.

PN146

Again your Honour, this is not a case where no applicable award applies. Upon termination of the agreement the Plumbing Trades Southern States Construction Award 1999 would continue to be binding on the company as well as the employee.

PN147

Your Honour, if after obtaining the views of persons bound by the agreement about whether it should be terminated, the Commission considers that it is not contrary to public interest to terminate the agreement, the Commission must by order terminate the agreement. Skilled Group submits that in light of the foregoing the agreement be terminated by the Commission pursuant to section 170MH(3) of the pre-reform Act. That concludes my submissions, your Honour.

PN148

THE SENIOR DEPUTY PRESIDENT: Thank you. Insofar as I'm required to obtain the view of persons bound by the agreement I'm satisfied that appropriate steps have been taken to achieve that end.

PN149

I have been advised, and accept, that there is one employee currently covered by this agreement and that that employee has been properly advised of the application to terminate, and also provided the opportunity to make their views known or make his particular views known to the Commission.

PN150

Further, I am satisfied that the union bound, being the CEPU, have been appropriately notified and provided with an opportunity to express what views they may have about the termination of the agreement. As I previously noted, there is no appearance before me by the CEPU.

PN151

It remains simply to consider whether or not it would be contrary to the public interest to terminate the agreement. The agreement has an underpinning award which is the Plumbing Trades Southern States Construction Award 1999 and I'm advised and accept that, absent this agreement, the terms and conditions of that award would apply and would therefore provide an appropriate safety net for any employee, either covered or who may be covered by the terms of this agreement.

PN152

I'm further advised that both the employee currently covered by the terms of this agreement and any further employee who may be will be afforded the same terms and conditions as provided for by the agreement, save and except for those terms and conditions of the agreement which offend the National Building Code.

PN153

There is nothing before me which would persuade me that it would be contrary to the public interest in the circumstances to terminate the agreement, and therefore in accordance with the relevant provision I am required to terminate it. Pursuant to schedule 7 Part II Division 1(2)(1)(k), in accordance with section 170MH of the Act as it was prior to 27 March2006, the Plumbing and Mechanical Services Skilled Engineering Limited and CEPU Enterprise Agreement 2002/2005 will be terminated with effect from today's date. An appropriate order effecting that termination will issue in due course. The matter is adjourned, thank you.

<ADJOURNED INDEFINITELY [10.33AM]

LIST OF WITNESSES, EXHIBITS AND MFIs

EXHIBIT #AI1 LETTER SENT FROM SKILLED GROUP TO WILLIAM FLEMING PN140