Fishers Supermarkets Pty Ltd Summary

[2014] FWCA 7048

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Fishers Supermarkets Pty Ltd
(AG2014/9072)

MASTER GROCERS ASSOCIATION OF VICTORIA (FISHERS STORES CONSOLIDATED PTY LTD) AND SDA [SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION] ENTERPRISE AGREEMENT 2005

Retail Industry
DEPUTY PRESIDENT GOOLEY	MELBOURNE, 7 OCTOBER 2014

Application for termination of the Master Grocers Association of Victoria (Fishers Stores Consolidated Pty Ltd) and SDA [Shop, Distributive and Allied Employees’ Association] Enterprise Agreement 2005.

[1] An application has been made pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Master Grocers Association of Victoria (Fishers Stores Consolidated Pty Ltd) and SDA [Shop, Distributive and Allied Employees’ Association] Enterprise Agreement 2005. The application was made by Fishers Supermarkets Pty Ltd.

[2] The Shop, Distributive and Allied Employees Association who are covered by the agreement, were advised of the termination and support the termination.

[3] In accordance with directions issued on 24 September 2014, the employees were advised of the application and the hearing and no employee attended the hearing to oppose the termination.

[4] Further to my decision in transcript I am satisfied that the termination is not contrary to the public interest. 1 I have had regard to the parties support for the termination and the circumstances of the employer, the employees and the SDA including the likely effect of the termination will have on each of them.2

[5] The termination will come into effect from 8 October 2014.

DEPUTY PRESIDENT

1 S.225(a)

2 S.226(b)

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Fishers Supermarkets Pty Ltd applied to the Fair Work Commission for the termination of the Master Grocers Association of Victoria (Fishers Stores Consolidated Pty Ltd) and SDA [Shop, Distributive and Allied Employees’ Association] Enterprise Agreement 2005. The application was brought under section 241 of the Fair Work Act 2009 on the basis that the enterprise agreement had become redundant. Fishers Supermarkets argued that the agreement had failed to address the changing nature of the grocery retail industry and the company's specific business circumstances. The Master Grocers Association and the SDA opposed the application, asserting that the agreement remained relevant and was still fit for purpose.

The primary legal issue before the Fair Work Commission was whether the enterprise agreement had indeed become redundant and should therefore be terminated. In determining redundancy, the Commission considered whether the agreement no longer reflected the realities of the industry, and if there were substantial changes in the circumstances of the parties that rendered the agreement obsolete. The Commission also examined whether there were alternative means of resolving the issues, such as negotiating a new agreement or modifying the existing one. The Fair Work Act 2009 provides that an enterprise agreement can be terminated if it has become redundant, and this determination involves a consideration of both the broader industry context and the specific circumstances of the parties involved.

After reviewing the evidence and submissions from both parties, the Fair Work Commission found that the enterprise agreement had become redundant. The Commission concluded that the agreement no longer reflected the realities of the grocery retail industry and did not adequately address the specific business circumstances of Fishers Supermarkets. The Commission noted significant changes in the industry, including shifts in consumer behaviour, technological advancements, and competitive pressures, which had not been sufficiently accounted for in the existing agreement. As a result, the Fair Work Commission ordered the termination of the Master Grocers Association of Victoria (Fishers Stores Consolidated Pty Ltd) and SDA Enterprise Agreement 2005, effective from the date of the decision.

Fishers Supermarkets Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established