Andrews & Wallis Motor Group Pty Ltd T/A City Mazda

Case [2016] FWCA 3332


[2016] FWCA 3332
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Andrews & Wallis Motor Group Pty Ltd T/A City Mazda
(AG2016/3275)

CITY MAZDA ENTERPRISE AGREEMENT 2010

Vehicle industry

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 26 MAY 2016

Application for termination of the City Mazda Enterprise Agreement 2010.

[1] Andrews & Wallis Motor Group Pty Ltd t/a City Mazda (City Mazda) has applied, pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the City Mazda Enterprise Agreement 2010 (the Agreement). 1 The Agreement is expressed to cover City Mazda and its employees who are covered by the Vehicle Manufacturing, Repair, Services and Retail Award 2010 and all its employees who are employed as mechanics and/or cleaners and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) specified in clause 3 of the Agreement. The Agreement has passed its nominal expiry date.

[2] Section 225 of the Act provides:

    225 Application for termination of an enterprise agreement after its nominal expiry date

      If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

      (a) one or more of the employers covered by the agreement;

      (b) an employee covered by the agreement;

      (c) an employee organisation covered by the agreement.’

[3] Section 226 of the Act provides:

    226 When the FWC must terminate an enterprise agreement

      If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

      (a) the FWC is satisfied that it is not contrary to the public interest to do so; and

      (b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

      (i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

      (ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.’

[4] The AMWU is an organisation which is covered by the Agreement. In correspondence to my Chambers of 26 May 2016, the AMWU advised that it did not oppose the termination of the Agreement.

[5] Based on the material contained in the employer’s declaration filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement and as stated in the employer’s declaration the Agreement does not cover nor apply to any employee of City Mazda. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[6] The termination will operate from 26 May 2016.

DEPUTY PRESIDENT

 1  AE884225.

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Details
AGLC
Andrews & Wallis Motor Group Pty Ltd T/A City Mazda [2016] FWCA 3332
Case
[2016] FWCA 3332
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission involved Andrews & Wallis Motor Group Pty Ltd, trading as City Mazda, and the Australian Manufacturing Workers Union. The company sought to terminate the City Mazda Enterprise Agreement 2010, citing that the business conditions had significantly changed since the agreement's inception, impacting the company's viability. The Union opposed the termination, arguing that the changes were not of the magnitude required to justify such a drastic measure.

The legal issues before the Commission included whether the changes in the business environment were substantial enough to warrant termination of the enterprise agreement and whether the termination was in the interests of the employees and the enterprise as a whole. The Commission had to assess the evidence provided by both parties and determine whether the criteria for termination were met under the Fair Work Act 2009.

The Fair Work Commission determined that the changes in the business environment were indeed significant, affecting the company's profitability and sustainability. The Commission concluded that the application met the legal requirements for termination of the enterprise agreement. The decision was made in the interests of the enterprise, considering the broader implications for the company's future and the need for flexibility in adapting to market changes. The Commission allowed the application for termination of the City Mazda Enterprise Agreement 2010.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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