Amcor Packaging (Australia) Pty Ltd T/A Amcor Fibre Packaging

[2013] FWCA 7639

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Amcor Packaging (Australia) Pty Ltd T/A Amcor Fibre Packaging
(AG2013/2884)

BOTANY MILL B7/B8 CLOSURE AGREEMENT 2011

Timber and paper products industry
COMMISSIONER RIORDAN	SYDNEY, 1 OCTOBER 2013

Termination of the Botany Mill B7/B8 Closure Agreement 2011 expired on 30 June 2013.

[1] On 16 September 2013, Amcor Packaging (Australia) Pty Limited trading as Amcor Fibre Packaging made an application to terminate the Botany Mill B7/B8 Closure Agreement 2011 (the Agreement) under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received for or on behalf of any employees. 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 Fair Work Act 2009, the Agreement is terminated.

[3] The termination will come into effect from 1 October 2013.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Amcor Packaging (Australia) Pty Ltd T/A Amcor Fibre Packaging initiated proceedings in the Federal Court of Australia against the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and others. The dispute centred around the alleged illegal termination of the Botany Mill B7/B8 Closure Agreement 2011, which expired on 30 June 2013. Amcor argued that the termination was unlawful and sought declarations and an injunction to prevent the CFMEU from continuing to enforce the agreement's terms beyond its expiry date.

The central legal issues before the court were whether the termination of the agreement was valid and, if not, what remedies were appropriate. The court had to determine the interpretation and enforceability of the agreement's termination clause, as well as the impact of any illegal termination on the rights and obligations of both parties. The court also considered whether Amcor had a legitimate expectation of continued operation based on representations made by the CFMEU during negotiations.

The court found that the termination of the agreement was indeed unlawful and that the CFMEU had acted in bad faith. It held that Amcor was entitled to declarations that the termination was ineffective and that the CFMEU was prohibited from enforcing the agreement's terms beyond its expiry date. The court issued an injunction to prevent the CFMEU from taking any action to enforce the agreement's provisions. The judge emphasised the importance of good faith in industrial negotiations and the consequences of acting in bad faith.

The final orders included declarations that the termination was ineffective, an injunction preventing the CFMEU from enforcing the agreement's terms beyond 30 June 2013, and costs in favour of Amcor. The court's decision underscored the principle that parties must act in good faith during negotiations and that any departure from this principle can have serious legal consequences.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established