Coregas Pty Ltd T/A Coregas

Case [2023] FWCA 543


[2023] FWCA 543

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.222—Enterprise agreement

Coregas Pty Ltd T/A Coregas

(AG2023/339)

Manufacturing and associated industries

DEPUTY PRESIDENT SAUNDERS

NEWCASTLE, 20 FEBRUARY 2023

Application for termination of the Coregas Operations Enterprise Agreement (Newcastle) 2021

  1. By an application dated 15 February 2023, Coregas Pty Ltd (Coregas) applied to the Fair Work Commission (Commission) to terminate the Coregas Operations Enterprise Agreement (Newcastle) 2021 (Agreement) pursuant to s 222 of the Fair Work Act2009 (Cth) (Act). The nominal expiry date of the Agreement was 3 December 2022.

  1. Section 223 of the Act sets out the conditions which must be met for an enterprise agreement to be terminated pursuant to s 222 of the Act:

223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.

  1. The application was supported by a statutory declaration made by Ms Corrinne Zuchetti, Head of People of the Applicant, on 15 February 2023. Ms Zuchetti, amongst other things, declared that both of the 2 employees covered by the Agreement voted to terminate the Agreement and there are no employee organisations covered by the Agreement.

  1. Based on the material that is before the Commission, including the statutory declarations made by Ms Zuchetti on 15 February 2023, I am satisfied that the requirements of s 223 of the Act have been met, including that I consider it is appropriate to approve the termination of the Agreement. The employees to whom the Agreement applies will be entitled to the benefits of the Manufacturing and Associated Industries and Occupations Award 2020 (Award) after the termination of the Agreement. The transfer to the Award will result in a 4% pay increase for the employees covered by the Agreement.

  1. Because I am satisfied as to each of the matters referred to in s 223(a) to (d) of the Act, I must approve the termination of the Agreement.

  1. In accordance with s 224 of the Act, the termination of the Agreement will come into effect from midnight on Friday, 24 February 2023. An order [PR750913] giving effect to this decision will be issued today.


DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE513248  PR750912>

Details
AGLC
Coregas Pty Ltd T/A Coregas [2023] FWCA 543
Case
[2023] FWCA 543
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, Coregas Pty Ltd (trading as Coregas) applied for the termination of the Coregas Operations Enterprise Agreement (Newcastle) 2021. The application was made under section 222 of the Fair Work Act 2009, with the nominal expiry date of the agreement being 3 December 2022. The agreement in question covers two employees, and the application was supported by a statutory declaration from Ms Corrinne Zuchetti, Head of People of Coregas.

The legal issues that the Commission was required to decide included whether the employers had complied with the requirements of subsection 220(2) in relation to giving employees a reasonable opportunity to decide on the agreement, whether the termination was agreed to in accordance with the relevant provisions of the Act, and whether there were any other reasonable grounds for believing that the employees had not agreed to the termination. The Commission also needed to consider whether it was appropriate to approve the termination, taking into account the views of any relevant employee organisations.

The Deputy President, Saunders, found that the requirements of section 223 of the Act had been met, and that it was appropriate to approve the termination of the agreement. The termination will result in the employees covered by the agreement being entitled to the benefits of the Manufacturing and Associated Industries and Occupations Award 2020, which includes a 4% pay increase. The termination will come into effect from midnight on Friday, 24 February 2023, in accordance with section 224 of the Act.

In conclusion, the Fair Work Commission approved the application for the termination of the Coregas Operations Enterprise Agreement (Newcastle) 2021, and the termination will take effect from midnight on Friday, 24 February 2023. The employees covered by the agreement will be entitled to the benefits of the Manufacturing and Associated Industries and Occupations Award 2020, which includes a 4% pay increase.

Orders

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Background

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Evidence

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Decision

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Ratio Decidendi

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