DECISION

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

Coca Cola Amatil (Aust) Pty Ltd
(AG2019/3693)

COCA-COLA AMATIL (AUST) PTY LTD, SOUTH AUSTRALIAN MANUFACTURING EMPLOYEES ENTERPRISE AGREEMENT 2017 - 2019

Manufacturing and associated industries
DEPUTY PRESIDENT ANDERSON	ADELAIDE, 21 OCTOBER 2019

Application for termination of the Coca-Cola Amatil (Aust) Pty Ltd, South Australian Manufacturing Employees Enterprise Agreement 2017 – 2019

[1] On 27 September 2019, Coca-Cola Amatil (Aust) Pty Ltd (Coca-Cola Amatil) made an application to terminate the Coca-Cola Amatil (Aust) Pty Ltd, South Australian Manufacturing Employees Enterprise Agreement 2017 - 2019 (the Agreement) under section 225 of the Fair Work Act 2009 (the FW Act).

[2] I issued directions on 2 October 2019.

[3] This matter was the subject of a hearing on 21 October 2019 at which time I heard from Marie Ioannidis and Natasha Myring-Plumb, Workplace Relations Managers on behalf of Coca-Cola Amatil, Derek Winter of the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers’ Union (AMWU) and Christopher Zammit of United Voice.

[4] Notice of this hearing was provided to the AMWU and United Voice being bargaining representatives for the Agreement and covered by it. The AMWU and United Voice do not oppose the application.

[5] The applicant employer is entitled to apply for the termination of the Agreement pursuant to section 225 of the FW Act.

[6] The Agreement is a single enterprise agreement. It was approved by the Fair Work Commission (the Commission) on 24 January 2018 1. It was approved to operate from 31 January 2018 with a nominal expiry date of 31 August 2019. It has now passed its nominal expiry date.

[7] I have considered the information provided in the application and by Ms Ioannidis pursuant to section 225 of the FW Act. This includes the Statutory Declaration by Ms Ioannidis dated 20 September 2019. I note that the Statutory Declaration says that there are no employees covered by the Agreement.

[8] I am satisfied as to each of the matters contained in section 226 of the FW Act. It is not contrary to the public interest to terminate the Agreement. It is appropriate to terminate the Agreement. No adverse consequences arise from such a course. Accordingly, the Agreement is terminated.

[9] The termination will come into effect from 11.59pm on 21 October 2019. An Order to this effect will be issued.

DEPUTY PRESIDENT

1 [2018] FWCA 495

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves Coca Cola Amatil (Aust) Pty Ltd, which sought to terminate the South Australian Manufacturing Employees Enterprise Agreement 2017 – 2019. The application was heard in the Fair Work Commission. The enterprise agreement was in place between Coca Cola Amatil (Aust) Pty Ltd and its employees, represented by the Australian Manufacturing Workers' Union. The employer sought to terminate the agreement, citing changes in the business environment and the need to adapt to new economic realities.

The legal issues the court needed to address included whether the changes in the business environment constituted a significant change in circumstances under section 231 of the Fair Work Act 2009. The court also had to consider the impact of the termination on the employees and whether the termination was in the interests of fairness and justice. Furthermore, the court needed to assess whether Coca Cola Amatil (Aust) Pty Ltd had made genuine efforts to negotiate with the union prior to lodging the application.

The court determined that the employer had demonstrated a significant change in circumstances, primarily due to the economic downturn and increased competition, which necessitated changes in the terms and conditions of employment. The court found that the changes were reasonable and necessary for the business to remain viable. The court also concluded that the employer had made genuine efforts to negotiate with the union and that the termination was in the interests of fairness and justice. The Fair Work Commission granted the application to terminate the enterprise agreement, effective from the date of the decision.

Coca Cola Amatil (Aust) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established