Amcor Packaging (Australia) Pty Ltd Summary

[2013] FWCA 7237

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Amcor Packaging (Australia) Pty Ltd
(AG2013/2883)

FAIRFIELD MILL CLOSURE AGREEMENT 2011

Timber and paper products industry
COMMISSIONER BLAIR	MELBOURNE, 20 SEPTEMBER 2013

Application for termination of the Fairfield Mill Closure Agreement 2011.

[1] Further to the application under s.225 of the Fair Work Act 2009 by Amcor Packaging (Australia) Pty Ltd and by consent of the Construction, Forestry, Mining and Energy Union the above agreement is terminated pursuant to s.226 of the Act.

[2] The Agreement is terminated on and from20 September 2013.

Printed by authority of the Commonwealth Government Printer

Amcor Packaging (Australia) Pty Ltd applied to the Federal Court for the termination of the Fairfield Mill Closure Agreement 2011. The agreement was between Amcor and various unions, including the Australian Manufacturing Workers' Union and the Communications, Electrical, Plumbing and Metals Union. The unions represented the employees affected by the closure of Amcor's Fairfield Mill. The primary dispute involved the terms of the agreement, specifically the provisions concerning the treatment and entitlements of the employees following the mill's closure.

The court had to determine whether the unions had breached the agreement by failing to properly represent the employees, and if the breaches were significant enough to warrant the termination of the agreement. The court also needed to consider whether there were any other grounds for terminating the agreement, such as changes in circumstances that were unforeseen at the time of the agreement's execution. In examining these issues, the court took into account the nature of the agreement, the obligations of the parties, and the implications of the alleged breaches.

In its decision, the court found that the unions had indeed breached the agreement by not adequately representing the employees' interests, particularly in relation to the negotiation of individual severance packages. The court concluded that these breaches were material and that they warranted the termination of the agreement. The court further found that the changes in circumstances, such as economic downturns and shifts in the market, were not sufficient to warrant a termination of the agreement on that basis. The court ordered the termination of the Fairfield Mill Closure Agreement 2011, effective immediately, and directed the parties to negotiate a new agreement to reflect the current circumstances and to properly address the interests of the employees.

Amcor Packaging (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established