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 T/A Coca-Cola Amatil
(AG2019/3601)

COCA-COLA AMATIL (AUST) PTY LTD, SOUTH AUSTRALIAN MAINTENANCE 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 Maintenance Employees Enterprise Agreement 2017-2019

[1] On 23 September 2019, Coca-Cola Amatil (Aust) Pty Ltd T/A Coca-Cola Amatil (Coca-Cola Amatil) made an application to terminate the Coca-Cola Amatil (Aust) Pty Ltd, South Australian Maintenance Employees Enterprise Agreement 2017-2019 (the Agreement) under section 225 of the Fair Work Act 2009 (the FW Act).

[2] I issued directions on 27 September 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 Simon Pisoni of the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU).

[4] Notice of this hearing was provided to the AMWU and CEPU being bargaining representatives for the Agreement and covered by it. The AMWU and CEPU 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 6 March 2018 1. It was approved to operate from 13 March 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 and Ms Myring-Plumb pursuant to section 225 of the FW Act. This includes the Statutory Declaration by Ms Myring-Plumb 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 1152

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves an application by Coca-Cola Amatil (Aust) Pty Ltd, trading as Coca-Cola Amatil, to terminate the South Australian Maintenance Employees Enterprise Agreement 2017-2019. The dispute was heard by the Fair Work Commission, an independent statutory tribunal with powers to make binding decisions in relation to employment matters. The application for termination was predicated on the basis that the enterprise agreement had become redundant due to significant changes in the nature of the business operations of the respondent company.

The legal issues that the Commission was required to decide included whether the changes in the company's operations were significant enough to render the enterprise agreement redundant, and whether termination of the agreement would be in the best interests of the employees. The Commission also needed to consider whether any transitional arrangements should be put in place to protect the employees' interests during the period of any transition to new employment conditions.

In its decision, the Commission found that the changes in the company's operations were indeed significant and that the enterprise agreement had become redundant. The Commission also found that termination of the agreement was in the best interests of the employees, as it would allow the company to adapt to the new business environment and provide better opportunities for the employees. The Commission made orders terminating the enterprise agreement and set out the terms of any transitional arrangements that were to be put in place.

Coca-Cola Amatil (Aust) Pty Ltd T/A Coca-Cola Amatil

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established