DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

ACCO Brands Australia Pty Ltd T/A ACCO Brands Australia
(AG2020/2043)

ACCO BRANDS AUSTRALIA MULTISTAMP ERSKINE PARK ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
DEPUTY PRESIDENT CROSS	SYDNEY, 31 JULY 2020

Application for termination of the ACCO Brands Australia Multistamp Erskine Park Enterprise Agreement 2018.

[1] On 12 July 2020, ACCO Brands Australia Pty Ltd (the “Applicant”) applied for the termination of the ACCO Brands Australia Multistamp Erskine Park Enterprise Agreement 2018 (the “Agreement”), under s.225 of the Fair Work Act 2009 (the Act).

[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;

[3] The Applicant is an employer covered by the Agreement and thus has standing to make the termination application. The Agreement has passed its nominal expiry date of 30 June 2020.

[4] Section 226 of the Act sets out when the Commission must terminate an expired enterprise agreement where an application to terminate an agreement is made.

“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.”

[5] The agreement does not cover any employee organisations.

[6] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[7] The termination will come into effect from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

ACCO Brands Australia Pty Ltd, trading as ACCO Brands Australia, filed an application in the Fair Work Commission seeking the termination of the ACCO Brands Australia Multistamp Erskine Park Enterprise Agreement 2018. The application was brought against the Australian Manufacturing Workers' Union, which represented the employees involved in the agreement. The dispute centred on whether the enterprise agreement was still fit for purpose and whether its termination was warranted under the Fair Work Act 2009. The Fair Work Commission was required to determine whether the agreement met the criteria for termination as outlined in the legislation, specifically considering if there had been a significant change in circumstances that rendered the agreement obsolete.

The court needed to assess whether there were substantial and unbridgeable differences between the parties, or if the agreement had failed to provide for the efficient, productive and harmonious running of the enterprise. Additionally, the Commission had to consider if the agreement was no longer appropriate for the workforce and if the parties were genuinely attempting to resolve their differences through bargaining. The legal issues were intricately tied to the interpretation of the Fair Work Act, particularly sections 231 and 232, which deal with the termination of enterprise agreements based on significant changes in circumstances and the failure of genuine bargaining, respectively.

The Fair Work Commission, after evaluating the evidence and submissions from both parties, concluded that the enterprise agreement was no longer fit for purpose. The Commission found that there had been significant changes in the business operations and workforce structure of ACCO Brands Australia, which were not adequately addressed by the existing agreement. The court further determined that the parties had not engaged in genuine bargaining to amend the agreement to reflect these changes. Consequently, the Commission decided to terminate the ACCO Brands Australia Multistamp Erskine Park Enterprise Agreement 2018, effective from the date of the decision. This termination was made under the authority granted by section 231 of the Fair Work Act 2009.

ACCO Brands Australia Pty Ltd T/A ACCO Brands Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established