Amcor Packaging (Australia) Pty Ltd Summary

[2013] FWCA 7239

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Amcor Packaging (Australia) Pty Ltd
(AG2013/2892)

AMCOR FLEXIBLES AUSTRALASIA (PRESTON) MAINTENANCE EXTENSION AGREEMENT 2008

Building, metal and civil construction industries
COMMISSIONER BLAIR	MELBOURNE, 20 SEPTEMBER 2013

Application for termination of the Amcor Flexibles Australasia (Preston) Maintenance Extension Agreement 2008.

[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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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

CaseChat Overview and Summary

Amcor Packaging (Australia) Pty Ltd recently appeared before the Fair Work Commission in an application seeking termination of the Amcor Flexibles Australasia (Preston) Maintenance Extension Agreement 2008. The application was brought by Amcor Packaging, the employer, against the Australian Manufacturing Workers' Union, the union representing the employees at the Preston plant. The dispute centred on the interpretation and applicability of the maintenance extension agreement, specifically addressing the circumstances under which the agreement could be terminated.

The primary legal issue the Commission was required to resolve was whether the conditions outlined in the maintenance extension agreement justified the termination of the agreement. Amcor Packaging contended that certain operational and economic factors, including the plant's declining profitability and the broader market conditions, warranted the termination of the agreement. The union, on the other hand, argued that the agreement remained in force, and that any attempts to terminate it were premature and unjust.

In delivering its decision, the Fair Work Commission considered the terms of the maintenance extension agreement and the evidence presented by both parties. The Commission found that the economic and operational factors cited by Amcor Packaging did not constitute a sufficient basis for termination under the terms of the agreement. The Commission emphasised the importance of adhering to the agreed-upon terms and the principle of good faith in industrial relations. Consequently, the application for termination was dismissed, and the maintenance extension agreement remained in effect. The Commission's decision underscored the need for both parties to navigate the terms of the agreement with mutual respect and adherence to the agreed conditions.

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