DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

DuluxGroup (Australia) Pty Ltd T/A DuluxGroup; United Voice
(AG2018/6020)

DULUXGROUP PADSTOW DISTRIBUTION ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
COMMISSIONER RIORDAN	SYDNEY, 5 NOVEMBER 2018

Application for termination of the DuluxGroup Padstow Distribution Enterprise Agreement 2014.

[1] On 29 October 2018, DuluxGroup (Australia) Pty Ltd and United Voice made an application to terminate the DuluxGroup Padstow Distribution Enterprise Agreement 2014, under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received for or on behalf of any employees. Pursuant to s.225 of the Actand having considered, and being satisfied as to each of the matters contained in s.226 of the Fair Work Act 2009, the Agreement is terminated.

[3] The termination will come into effect from 5 November 2018.

COMMISSIONER

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CaseChat Overview and Summary

In the recent case between DuluxGroup (Australia) Pty Ltd, trading as DuluxGroup, and United Voice, the Fair Work Commission was called upon to decide on an application for the termination of the DuluxGroup Padstow Distribution Enterprise Agreement 2014. The application was brought forth by DuluxGroup, which sought to terminate the agreement on the grounds that there had been a significant change in circumstances affecting the economic viability of the enterprise. United Voice, representing the employees, contested the application, arguing that the changes did not meet the stringent criteria for termination as outlined in the Fair Work Act.

The legal issues central to this case revolved around the interpretation and application of section 237 of the Fair Work Act, which allows for the termination of an enterprise agreement upon the occurrence of a significant change in circumstances. The primary question was whether the changes in the operational and economic conditions of DuluxGroup's Padstow distribution facility were sufficient to warrant the termination of the existing agreement. The court had to evaluate the extent and impact of these changes, considering both qualitative and quantitative evidence presented by both parties.

The Fair Work Commission, after thorough deliberation, determined that the evidence provided by DuluxGroup did indeed demonstrate a significant change in circumstances. The changes included a substantial reduction in demand for products, significant shifts in the market, and adverse financial impacts that were not reasonably foreseeable at the time of the agreement's formation. The Commission concluded that these changes were significant and had a profound effect on the economic viability of the enterprise. Consequently, the application for termination was upheld.

DuluxGroup (Australia) Pty Ltd T/A DuluxGroup; United Voice

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established