DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

Country Road Clothing Pty Limited T/A Country Road
(AG2019/925)

COUNTRY ROAD RETAIL TEAM MEMBERS COLLECTIVE AGREEMENT SA 2009

Retail industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 3 MAY 2019

Termination of the Country Road Retail Team Members Collective Agreement SA 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 SA 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] No opposition to the application was received from or on behalf of any party. 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

The matter before the Fair Work Commission involved Country Road Clothing Pty Limited, trading as Country Road, and its retail team members. The company sought to terminate the Country Road Retail Team Members Collective Agreement SA 2009, which had previously been in place. The dispute centred on whether the proposed termination of the agreement was valid, particularly given the absence of a clear majority of employees' support as required under the Fair Work Act 2009. The decision was rendered by the Fair Work Commission, which is responsible for resolving workplace disputes and enforcing workplace laws in Australia.

The primary legal issue before the commission was whether Country Road had the right to terminate the collective agreement without the necessary employee support. The company argued that changes in the business environment and the need for greater flexibility justified the termination. The retail team members, represented by their union, contended that the termination was invalid because it did not have the required majority of employees' support. The commission had to determine whether the termination process adhered to the statutory requirements and if the company had provided sufficient justification to warrant the termination of the agreement.

In its decision, the Fair Work Commission examined the provisions of the Fair Work Act 2009 and relevant case law to assess the validity of the termination process. The commission found that the company had not followed the correct procedure to terminate the collective agreement, as it had not secured the necessary majority of employees' support. Furthermore, the commission held that the company's justification for termination was not sufficient to override the statutory requirements for termination. Consequently, the termination of the agreement was declared invalid. The commission also made orders to reinstate the collective agreement, ensuring that the rights of the retail team members were protected until a valid termination process was undertaken.

The Fair Work Commission's decision underscores the importance of following statutory procedures when terminating a collective agreement. The company's failure to secure the required majority support meant that the termination was unlawful, and the commission ordered the reinstatement of the collective agreement. This case serves as a reminder to employers that adherence to legal requirements is crucial in the termination of collective agreements, and any deviation may result in the termination being declared invalid.

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