Alsco Pty Ltd

[2023] FWCA 1429

[2023] FWCA 1429

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.222 - Application for approval of a termination of an enterprise agreement

Alsco Pty Ltd

(AG2023/1215)

ALSCO SERVICES DELIVERY ADELAIDE BRANCH ENTERPRISE AGREEMENT 2018

Dry cleaning and laundry services
COMMISSIONER PLATT	ADELAIDE, 18 MAY 2023

Application for termination of the Alsco Services Delivery Adelaide Branch Enterprise Agreement 2018.

1. On 28 April 2023, Alsco Pty Ltd (Alsco) made an application for the termination of the Alsco Services Delivery Adelaide Branch Enterprise Agreement 2018 (the Agreement), an enterprise agreement that had passed its nominal expiry date, pursuant to s.222 of the Fair Work Act 2009 (the Act).

Relevant Legislation

1. Sections 222 and 223 of the Act are relevant to this application and are as follows:

“222 Application for FWA approval of a termination of an enterprise agreement

Application for approval

(1) If a termination of an enterprise agreement has been agreed to, a person covered by the agreement must apply to FWA for approval of the termination.

Material to accompany the application

(2) The application must be accompanied by any declarations that are required by the procedural rules to accompany the application.

When the application must be made

(3) The application must be made:

(a) within 14 days after the termination is agreed to; or

(b) if in all the circumstances FWA considers it fair to extend that period—within such further period as FWA allows.

223 When FWA must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, FWA must approve the termination if:

(a) FWA is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) FWA is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) FWA is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) FWA considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

1. The Application was made within the timeframe required.

1. Attached to the application was a statutory declaration of Ms Danielle Tahlia Keogh, People & Culture Business Partner, which is relevantly summarised as follows:

·   The Agreement passed its nominal expiry date on 9 April 2023.  

·   On 13 April 2023, all staff were provided a memo (a copy of which was attached to the Application) notifying employees that Alsco wished to terminate the Enterprise Agreement, setting out reasons for the decision and providing information relating to the change and its effect. This memo also set an information session to be held on 18 April 2023.

·   On 18 April 2023, all staff were provided with an FAQ (also attached to the Application) setting out a number of common questions and answers relating to the decision to terminate the Enterprise Agreement. Staff also attended the information session which took the employees through the proposed change and its effects.

·   Non-English speaking background employees were asked to advise if they needed additional help to understand the documents for the proposed termination. Employees were also encouraged to speak to their family, co-workers or designated buddies from their language group.

·   On 27 April 2023, a vote was conducted.

·   Of the 9 employees covered by the Agreement, all vast a valid vote, and 8 employees voted to approve the termination.

1. I am satisfied that the employer complied with subsection 220(2) of the Act by giving the affected employees a reasonable opportunity to decide whether they wanted to approve the proposed termination. There are no other reasonable grounds for believing that the employees have not agreed to the termination.

1. On 4 May 2023, I issued directions requiring the application and supporting documents be served on all employees and employee organisations covered by the Agreement, so that I could seek their views in accordance with s.223(d) of the Act. The employees and employee organisations were advised to contact my Chambers if they wished to express any views.

1. No employees or employee organisations covered by the Agreement contacted my Chambers.

1. I have considered and am satisfied that each of the requirements contained in ss.222 and 223 of the Act have been met. I consider that it is appropriate to terminate the Agreement.

1. The termination will come into effect from the date of this Decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<AE502811  PR762010>