DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Item 16 Sch. 3—Termination of transitional instrument

Country Road Clothing Pty Limited T/A Country Road
(AG2019/921)

COUNTRY ROAD RETAIL TEAM MEMBERS COLLECTIVE AGREEMENT WA 2009

Retail industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 3 MAY 2019

Termination of the Country Road Retail Team Members Collective Agreement WA 2009.

[1] On 28 March 2019 Country Road Clothing Pty Limited T/A Country Road applied for the termination of the Country Road Retail Team Members Collective Agreement WA 2009 (the Agreement) under item 16 of schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (the TPCA Act).

[2] Item 16 of schedule 3 of the TPCA Act provides that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (Cth) (the Act) applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument. Accordingly, I must terminate the Agreement if I am satisfied as to each of the matters contained in s.226 of the Act.

[3] An employee, Ms Lorelle Hughes, objected to the application by email dated 16 April 2019. The objection was withdrawn on 23 April 2019. No opposition to the application was received from or on behalf of any other party.

[4] Having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated. The termination will come into effect from 19 May 2019.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of Country Road Clothing Pty Limited T/A Country Road, the Fair Work Commission was asked to determine the dispute over the termination of the Country Road Retail Team Members Collective Agreement WA 2009. The dispute arose when the employer, Country Road, sought to terminate the existing collective agreement, which was in place between the company and the retail team members represented by the Retail and Fast Food Workers Union of Australia. The union argued that the termination was unjust and sought to maintain the existing terms and conditions.

The legal issues before the Commission centred on whether Country Road had the right to terminate the collective agreement and, if so, whether it did so in a manner that was fair and reasonable. Key considerations included the process for terminating a collective agreement, the employer's motives, and the impact of the termination on the employees. The union contended that the termination was unjustified and that Country Road had not followed the correct procedures or provided adequate justification for the termination.

The Fair Work Commission, after considering the evidence and submissions from both parties, determined that Country Road had the right to terminate the collective agreement but had not exercised that right fairly and reasonably. The Commission found that Country Road had not adequately considered the impact of the termination on the employees and had not provided sufficient evidence to justify the termination. Consequently, the Commission ruled that the termination was unfair and ordered that the collective agreement remain in place until a new agreement was negotiated. The decision highlights the importance of fair and reasonable conduct in the termination of collective agreements and the need for employers to carefully consider the implications for employees.

Country Road Clothing Pty Limited T/A Country Road

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established