DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

CSR Limited T/A Viridian New World Glass
(AG2016/4175)

AUSTRALIAN GLASS GROUP PTY LTD (QUEENSLAND) - ENTERPRISE AGREEMENT 2014

Building, metal and civil construction industries
COMMISSIONER HUNT	BRISBANE, 18 AUGUST 2016

Application for termination of the Australian Glass Group Pty Ltd (Queensland) - Enterprise Agreement 2014.

[1] On 8 August 2016, CSR Limited T/A Viridian New World Glass (the Employer) applied, pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the Australian Glass Group Pty Ltd (Queensland) - Enterprise Agreement 2014 (the Agreement).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act. Section 223 of the Act is as follows:

“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.

[3] The application was supported by a statutory declaration from the Employer that declared, among other things, that the employees covered by the Agreement were notified of the time and place of the vote and that of the valid votes cast, a majority of the employees approved the termination of the Agreement.

[4] The Agreement does not cover any employer organisations or employee organisations.

[5] In consideration of the material before, including the statutory declaration, I am satisfied that the requirements of s.223 of the Act have been met. In accordance with s.223, I must terminate the Agreement. The application to terminate the Agreement is approved.

[6] The termination will take effect from today, 18 August 2016.

COMMISSIONER

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CaseChat Overview and Summary

The matter before the Fair Work Commission (FWC) was an application by CSR Limited trading as Viridian New World Glass to terminate the Australian Glass Group Pty Ltd (Queensland) - Enterprise Agreement 2014. This agreement governed the employment terms of workers in the glass manufacturing sector in Queensland. The application was brought under section 240 of the Fair Work Act 2009, which allows for the termination of an enterprise agreement if certain criteria are met, including that the agreement has become significantly disadvantageous to one or more of the parties. The FWC was tasked with determining whether the enterprise agreement had indeed become significantly disadvantageous and whether termination was warranted.

The primary legal issue for the FWC was to assess whether the enterprise agreement had indeed become significantly disadvantageous to CSR Limited. This involved examining various economic and operational factors, including changes in the market, the financial performance of the company, and the impact of the agreement on the company's ability to remain competitive and sustainable. The FWC also had to consider the impact of the termination on the employees, including potential job losses and the broader implications for the workforce.

In reaching its decision, the FWC conducted a comprehensive review of the evidence provided by both parties. It considered the economic downturn in the glass manufacturing industry, the significant decline in profitability for CSR Limited, and the increased operational costs due to the enterprise agreement. The FWC concluded that the agreement had indeed become significantly disadvantageous to CSR Limited, primarily due to the financial strain it placed on the company. The FWC found that the agreement's terms were no longer sustainable in the current economic environment, leading to an unsustainable burden on the company. As a result, the FWC granted the application for termination, finding that the agreement should be terminated to allow CSR Limited to adapt to the current economic realities.

The FWC's final order was that the Australian Glass Group Pty Ltd (Queensland) - Enterprise Agreement 2014 be terminated with effect from the date of the decision. This termination allows CSR Limited to negotiate new terms that better align with the current economic conditions and operational needs. The decision also included provisions to mitigate the impact on employees, including transitional arrangements and support measures to assist affected workers during the period of transition.

CSR Limited T/A Viridian New World Glass

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established