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
(AG2019/928)

COUNTRY ROAD RETAIL TEAM MEMBERS COLLECTIVE AGREEMENT NT 2009

Retail industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 3 MAY 2019

Termination of the Country Road Retail Team Members Collective Agreement NT 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 NT 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

Country Road Clothing Pty Limited, trading as Country Road, was the plaintiff in a case before the Fair Work Commission. The company sought to terminate the Country Road Retail Team Members Collective Agreement NT 2009, which governed the employment conditions of its retail team members in the Northern Territory. The dispute centred on the company's assertion that changes in the retail environment necessitated a revision of the existing agreement, which it claimed had become outdated and unworkable.

The legal issues before the commission were whether the changes sought by Country Road were justified and whether the proposed termination of the agreement was in accordance with the Fair Work Act 2009. Specifically, the commission had to determine if the changes were necessary to accommodate a significantly altered retail environment and if the termination process complied with the provisions of the act, including whether appropriate consultation had occurred.

In its decision, the commission found that the retail environment had indeed undergone significant changes, warranting modifications to the existing agreement. The company had demonstrated that the current agreement was no longer suitable for the new retail context. The commission also considered the consultation process and found that while Country Road had engaged in discussions with the relevant union, it had not sufficiently demonstrated that it had made a genuine effort to reach an agreement with the union. However, given the substantial changes in the retail environment, the commission concluded that the termination of the agreement was justified. The commission ultimately approved the termination of the collective agreement, allowing Country Road to implement the proposed changes.

The final orders included the termination of the Country Road Retail Team Members Collective Agreement NT 2009, effective from a specified date, and the implementation of the new employment terms proposed by Country Road. The commission also directed that Country Road engage in further consultation with the union to address any outstanding issues and to facilitate a smoother transition for the affected 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