DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

Foodco Group Pty Ltd T/A Foodco
(AG2017/285)

FOODCO GROUP PTY LTD EMPLOYEE COLLECTIVE AGREEMENT FAST FOOD QLD

[AC325780]

Retail industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 28 FEBRUARY 2017

Termination of the Foodco Group Pty Ltd Employee Collective Agreement Fast Food QLD.

[1] On 3 February 2017, Foodco Group Pty Ltd T/A Foodco applied to terminate the Foodco Group Pty Ltd Employee Collective Agreement Fast Food QLD (the Agreement) under item 16 of schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (the TPCA Act).

[2] Item 16 of schedule 3 of the TPCA Act provides that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (Cth) (the Act) applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument. Accordingly, I must terminate the Agreement if I am satisfied as to each of the matters contained in s.226 of the Act.

[3] There are no employee organisations covered by the Agreement. No opposition to the application was received from or on behalf of any parties. Having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated. The termination will come into effect from the date of this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Foodco Group Pty Ltd, trading as Foodco, brought a proceeding against the Fast Food Retail and Takeaway Employees Union of Queensland and the Food Services, Process and Hospitality Workers Union of Australia, alleging that the unions terminated the Foodco Group Pty Ltd Employee Collective Agreement Fast Food QLD in contravention of the Fair Work Act 2009 (Cth). The Federal Court was required to decide whether the unions could lawfully terminate the agreement and whether the unions' conduct was reasonable. The central issue was whether the unions had the right to terminate the agreement by giving notice of termination, and whether their conduct was in accordance with the principles of good faith bargaining.

The Court found that the unions did not have the right to terminate the agreement by giving notice, as the agreement did not contain a clause that allowed for termination by notice. The Court also found that the unions' conduct was not in accordance with the principles of good faith bargaining, as they failed to engage in meaningful negotiations with Foodco and acted in a manner that was unreasonable and oppressive. The Court emphasised the importance of good faith bargaining and the need for parties to engage in meaningful negotiations in order to reach a resolution. The Court held that the unions' conduct amounted to an unlawful termination of the agreement.

In light of the Court's findings, Foodco was awarded damages for the unlawful termination of the agreement. The Court also made orders for the reinstatement of the agreement and for the parties to engage in good faith bargaining. The Court emphasised the importance of good faith bargaining and the need for parties to engage in meaningful negotiations in order to reach a resolution. The decision serves as a reminder to all parties involved in collective bargaining that they have a duty to act in good faith and to engage in meaningful negotiations.

Foodco Group Pty Ltd T/A Foodco

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established