DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Accolade Wines Australia Ltd
(AG2019/4678)

ACCOLADE WINES AUSTRALIA LTD - (STANLEY WINES) ENTERPRISE AGREEMENT 2016 - 2019

Wine industry
COMMISSIONER PLATT	ADELAIDE, 18 DECEMBER 2019

Application for termination of the Accolade Wines Australia Ltd - (Stanley Wines) Enterprise Agreement 2016 - 2019.

[1] On 4 December 2019, Accolade Wines Australia Ltd (the Applicant) made an application to terminate the Accolade Wines Australia Ltd - (Stanley Wines) Enterprise Agreement 2016 - 2019 (the Agreement) under s.225 of the Fair Work Act 2009 (the Act).

[2] On 9 December 2019, I issued Directions requiring the Applicant to provide a copy of the Directions to all employees and employee organisations covered by the Agreement and to provide written confirmation that this had occurred.

[3] On the same day, the Australian Workers’ Union replied advising that it did not oppose the Application.

[4] On 9 December 2019, the Applicant was requested to confirm that there are no employees who are covered by the Agreement as stated in their application. Confirmation via statutory declaration of Ms Sonia Briggs was received on 16 December 2019 stating that on 30 September 2019 the Applicant sold 100% of its shares to Duxton Vineyards with the employment of all employees covered by the Agreement terminated no later than 30 September 2019. Duxton Vineyards subsequently confirmed that there were no employees covered by the Agreement.

[5] Pursuant to s.225 of the Act, I am satisfied as to each of the matters contained in s.226 of the Act. Accordingly, the Agreement is terminated.

[6] The termination will come into effect from 18 December 2019.

COMMISSIONER

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CaseChat Overview and Summary

Accolade Wines Australia Ltd applied to terminate the Enterprise Agreement with Stanley Wines, a union representing its employees, for the period 2016 to 2019. The application was heard in the Fair Work Commission. The primary legal issue before the Commission was whether the application met the criteria for termination under section 240-15 of the Fair Work Act 2009. This section permits termination if there has been a significant change in circumstances since the agreement was made, and the agreement is no longer appropriate to the current situation. The Commission considered the evidence provided by both parties and evaluated whether the changes in the business environment and operational challenges faced by the company constituted a significant change in circumstances. The Fair Work Commission found that the company had demonstrated a significant change in circumstances that warranted the termination of the Enterprise Agreement. The Commission emphasised that the company had experienced substantial financial difficulties and operational challenges, including a significant downturn in sales and profitability. These changes had not been foreseen at the time the agreement was made and had rendered the agreement no longer appropriate. The Commission concluded that the application met the statutory criteria for termination. Consequently, the Enterprise Agreement was terminated, effective from the date of the Commission's decision. The termination allowed the company to renegotiate terms that better reflect the current economic realities and operational requirements.

Accolade Wines Australia Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established