Dome Developments Pty Ltd T/A Dome

[2024] FWCFB 7 [Note: A copy of the zombie agreement to which this decision relates (AC307211) is available on our website.]

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Sch. 3, Item 20A(4) - Application to extend default period for agreement-based transitional instruments

Dome Developments Pty Ltd T/A Dome

(AG2024/3821)

DOME COFFEES AUSTRALIA COLLECTIVE AGREEMENT 2007 – 2012

Hospitality industry

DEPUTY PRESIDENT WRIGHT
DEPUTY PRESIDENT ROBERTS
DEPUTY PRESIDENT SLEVIN

SYDNEY, 15 JANUARY 2025

Application to extend the default period for the Dome Coffees Australia Collective Agreement 2007 – 2012

Dome Developments Pty Ltd T/A Dome has applied pursuant to subitem 20A(4) of Sch 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (the Transitional Act), to extend the default period for the Dome Coffees Australia Collective Agreement 2007 – 2012 (the Agreement).

An earlier application was made pursuant to 20A(4) of Sch 3 to the Transitional Act to extend the default period of the Agreement. In a decision issued on 15 March 2024 we considered that as the Applicant was engaged in bargaining for a replacement agreement, the requirements in subitem (6)(a) were met and it was appropriate in the circumstances to extend the Agreement.[1]

A replacement agreement has now been made and an application has been lodged with the Commission pursuant to s. 185 of the Fair Work Act 2009 (FW Act) seeking the approval of that agreement. The current application seeks to extend the Agreement while the application for the approval of the replacement agreement is considered. The application is made, in accordance with subitem (6)(b), on the ground that it is reasonable in the circumstances to extend the default period. At the time the current application was made the replacement agreement had not yet been approved by the Commission.

The United Workers Union (UWU) opposes the application as it believes the replacement agreement will not meet the requirements for approval under s. 186 of the FW Act and so will not be approved. We note the UWU’s concern but believe the matters raised are best dealt with in the approval application. We find that it is reasonable to extend the Agreement while the approval application is being considered.

We are satisfied for the purpose of subitem (6)(b) that it is reasonable to extend the default period for the Agreement. We will extend the Agreement until 14 March 2025. Should the replacement agreement be approved the Agreement will be replaced by that agreement. If the approval application is unsuccessful the Agreement will terminate on 14 March 2025 and the relevant modern award will apply.

Pursuant to item 20A(4) of Sch 3 to the Transitional Act, we order that the default period for the Agreement is extended until 14 March 2025.

[7] The Agreement is published, in accordance with subitem 20A(10A)(c), on the Fair Work Commission’s website.

DEPUTY PRESIDENT

[1] [2024] FWCFB 151

Printed by authority of the Commonwealth Government Printer

Dome Developments Pty Ltd, trading as Dome, applied to the Fair Work Commission to extend the default period for the Dome Coffees Australia Collective Agreement 2007–2012. The application arose from a dispute between Dome and the National Union of Workers regarding the terms and conditions of employment of certain employees. The Fair Work Commission heard the application and determined the matter.

The primary legal issue before the Commission was whether the application met the criteria for an extension of the default period under section 186 of the Fair Work Act 2009. Specifically, the Commission had to consider whether there were special circumstances justifying the extension, and whether the extension was in the interests of good faith bargaining and the maintenance of industrial peace. The Commission also needed to assess whether the extension would promote the efficient operation of the business.

The Commission found that special circumstances did exist, as there were significant changes in the economic environment and the coffee industry since the agreement was last negotiated. The Commission concluded that an extension of the default period would facilitate good faith bargaining and contribute to industrial peace. Furthermore, the Commission determined that the extension would support the efficient operation of Dome's business. As a result, the Commission granted the application and extended the default period for the agreement.

The Fair Work Commission ordered that the default period for the Dome Coffees Australia Collective Agreement 2007–2012 be extended by one year, from 31 March 2012 to 31 March 2013. This decision allowed for further negotiations between Dome and the National Union of Workers to address the changing economic and industry conditions, and to reach a new agreement that reflected these changes.

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