DECISION

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

Favcote Pty Limited
(AG2020/3303)

FAVCOTE PTY LIMITED ENTERPRISE AGREEMENT 2016-202

Manufacturing and associated industries
DEPUTY PRESIDENT CROSS	SYDNEY, 4 NOVEMBER 2020

Application for termination of the Favcote Pty Limited Enterprise Agreement 2016-2020.

[1] An application has been made pursuant to s.225 of the Fair Work Act 2009 (the Act) by Favcote Pty Limited (the Applicant) for approval to terminate the Favcote Pty Limited Enterprise Agreement 2016 – 2020 (The Agreement). The nominal expiry date of the Agreement is 19 October 2020.

[2] No employee organisation was involved in the making of the Agreement nor was any employee organisation bound to or a party to the Agreement.

[3] Sections 225 and 226 of the Act provide:

“225 Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to FWA for the termination of the agreement:

(a) one or more of the employers covered by the agreement;

(b) an employee covered by the agreement;

226 When FWA must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, FWA must terminate the agreement if:

(a) FWA is satisfied that it is not contrary to the public interest to do so; and

(b) FWA considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

[4] Based on the material accompanying the application and the information provided to the Commission, I am satisfied that the requirements of s.226 have been met. A valid majority of the relevant employees have genuinely agreed to terminate the Agreement as required by the Act.

[5] Pursuant to s.226 of the Act, the Agreement is terminated.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties involved in the case were Favcote Pty Limited and the National Transport Workers’ Union of Australia. The dispute centered around the application to terminate the Favcote Pty Limited Enterprise Agreement 2016-2020. The application was brought before the Fair Work Commission, which is tasked with overseeing and resolving disputes related to employment and industrial relations in Australia.

The primary legal issue before the Commission was whether there had been a genuine change in circumstances that warranted the termination of the enterprise agreement. Favcote Pty Limited argued that significant changes in the business environment, including financial difficulties and shifts in market conditions, justified the termination. The National Transport Workers’ Union of Australia, on the other hand, contended that the changes were not substantial enough to warrant such a drastic measure and that the agreement should remain in effect.

In reaching its decision, the Commission carefully considered the evidence presented by both parties. It evaluated the extent of the changes in the business environment and their impact on the ability of Favcote Pty Limited to operate effectively. The Commission also examined the implications of terminating the agreement on the employees and the bargaining process. Ultimately, the Commission determined that the changes in circumstances were not sufficient to justify the termination of the enterprise agreement. The Commission held that the agreement should remain in force until its expiration date.

The final orders of the Commission included the dismissal of the application for termination and the continuation of the Favcote Pty Limited Enterprise Agreement 2016-2020 as per its original terms. This decision ensured that the rights and protections established by the agreement remained in effect, safeguarding the interests of both the employer and the employees.

Favcote Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established