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
(AG2019/3694)

CRUSTA FRUIT JUICES SOUTH AUSTRALIAN OPERATIONS EMPLOYEES ENTERPRISE AGREEMENT 2014-2017

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT ANDERSON	ADELAIDE, 21 OCTOBER 2019

Application for termination of the Crusta Fruit Juices South Australian Operations Enterprise Agreement 2014-2017

[1] On 27 September 2019, Coca-Cola Amatil (Aust) Pty Ltd (Coca-Cola Amatil) made an application to terminate the Crusta Fruit Juices South Australian Operations Enterprise Agreement 2014-2017 (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 Natasha Myring-Plumb and Marie Ioannidis, Workplace Relations Managers on behalf of Coca-Cola Amatil and Peter Lamps of the Australian Workers’ Union (AWU).

[4] Notice of this hearing was provided to the AWU being a bargaining representative for the Agreement and covered by it. The AWU does 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 13 May 2014 1. It was approved to operate from 21 May 2014 with a nominal expiry date of 1 February 2017. 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 3090

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Coca Cola Amatil (Aust) Pty Ltd sought to terminate the Crusta Fruit Juices South Australian Operations Enterprise Agreement 2014-2017, citing substantial change of circumstances as the basis for the application. The primary dispute centred around whether the conditions outlined in section 231 of the Fair Work Act 2009 had been met to warrant the termination of the enterprise agreement. The applicant argued that changes in the broader economic environment, including increased competition and shifts in consumer preferences, amounted to a substantial change that justified renegotiation of the agreement's terms.

The legal issues before the court involved interpreting the criteria for a substantial change of circumstances and determining whether the changes presented by Coca Cola Amatil were indeed substantial enough to warrant the termination of the enterprise agreement. The court had to assess whether the changes were both unforeseen at the time the agreement was made and had a significant impact on the operation of the enterprise agreement. Furthermore, the court needed to evaluate whether Coca Cola Amatil had acted in good faith and followed the correct procedural steps in applying for the termination.

The Fair Work Commission found that the changes cited by Coca Cola Amatil were significant and unforeseen, leading to a substantial change in the circumstances under which the enterprise agreement was made. The economic conditions and competitive landscape had shifted markedly since the agreement's inception, affecting the company's ability to operate effectively under the existing terms. The Commission concluded that the changes were substantial enough to warrant renegotiating the agreement's terms, and thus upheld the application for termination. The Commission ordered that the enterprise agreement be terminated, allowing the parties to commence negotiations for a new agreement that better reflects the current economic realities.

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