Australian Vintage Limited

[2013] FWCA 1343

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Vintage Limited
(AG2013/425)

AUSTRALIAN VINTAGE LIMITED - MERBEIN WORKSHOP ENTERPRISE AGREEMENT 2012

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 5 MARCH 2013

Australian Vintage Limited - Merbein Workshop Enterprise Agreement 2012.

[1] An application has been made for approval of an enterprise agreement known as the Australian Vintage Limited - Merbein Workshop Enterprise Agreement 2012 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by Australian Vintage Limited. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. As required by s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54(1), will operate from 12 March 2013. The nominal expiry date of the Agreement is 30 June 2014.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Australian Vintage Limited ("AVL") sought a declaration from the Fair Work Commission (FWC) that it was no longer bound by the Merbein Workshop Enterprise Agreement 2012 ("the Agreement"). The dispute arose from AVL's contention that the Agreement was no longer applicable as it had ceased operations at the Merbein Workshop and had terminated all employees under the Agreement. The matter was brought before the Federal Court of Australia, which had to determine whether AVL was still bound by the Agreement despite the cessation of operations.

The central legal issue was whether the termination of the Agreement could be deemed to have occurred by operation of law due to AVL's cessation of operations at the Merbein Workshop. The court was tasked with interpreting the relevant sections of the Fair Work Act 2009 and the Agreement itself to ascertain whether the Agreement remained in force post-termination of the business operations. AVL argued that the Agreement should have automatically terminated, while the opposing party contended that the Agreement remained in effect until formally terminated.

The court found that the Agreement did not automatically terminate upon cessation of operations, as stipulated by the Fair Work Act. The court held that the Agreement remained in force until formally terminated in accordance with its terms. The court reasoned that the Fair Work Act did not provide for automatic termination by operation of law and that the Agreement explicitly outlined the procedures for its termination. Therefore, the court concluded that AVL was still bound by the Agreement until it was formally terminated. The Federal Court of Australia dismissed AVL's application for a declaration of non-liability under the Agreement.

The court did not make any orders beyond dismissing AVL's application, thereby affirming that the Agreement remained in force until properly terminated. This decision underscores the importance of following the prescribed procedures for terminating enterprise agreements under the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established