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
(AG2019/929)

COUNTRY ROAD RETAIL TEAM MEMBERS ENTERPRISE AGREEMENT 2006

Retail industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 3 MAY 2019

Termination of the Country Road Retail Team Members Enterprise Agreement 2006.

[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 Enterprise Agreement 2006 (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 T/A Country Road brought a proceeding in the Fair Work Commission against its retail team members, represented by the Retail and Fast Food Employees Union. The company sought to terminate the 2006 Enterprise Agreement, alleging that it was no longer appropriate to the business and that the parties had reached an impasse in negotiations. The union contested the termination, arguing that the agreement was still suitable and that the parties had not genuinely attempted to negotiate. The Fair Work Commission was tasked with determining whether the agreement could be terminated and, if so, whether the company had genuinely attempted to negotiate.

The commission identified several key legal issues to be addressed. Firstly, it had to assess whether the 2006 Enterprise Agreement was still appropriate to the business, considering the changes in the retail environment and the company's operations. Secondly, it had to determine whether the parties had genuinely attempted to negotiate a new agreement, evaluating the evidence and submissions from both sides. Finally, if the commission found that the agreement could be terminated and that the company had genuinely attempted to negotiate, it had to consider whether terminating the agreement was a reasonable and appropriate action.

The commission concluded that the 2006 Enterprise Agreement was no longer appropriate to the business, as the retail environment had significantly changed since its inception. It found that the company had genuinely attempted to negotiate a new agreement, despite the union's refusal to engage in meaningful discussions. Given these findings, the commission decided that terminating the agreement was a reasonable and appropriate action. It granted the company's application to terminate the 2006 Enterprise Agreement, effective from the date specified in the application.

The commission ordered that the termination of the 2006 Enterprise Agreement would take effect on the date specified in Country Road's application. It also directed that the parties would be free to negotiate a new agreement and that any new agreement would be subject to the usual processes for registration and enforcement. The commission emphasised that its decision was based on the specific circumstances of this case and did not set a precedent for other cases. It highlighted the importance of genuine negotiations and the need for parties to adapt to changing business environments.

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