Glen Industries Summary

[2013] FWCA 4237

FAIR WORK COMMISSION

DECISION

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

Glen Industries
(AG2013/7121)

GLEN INDUSTRIES COLLECTIVE AGREEMENT 2008

Health and welfare services
COMMISSIONER STANTON	NEWCASTLE, 28 JUNE 2013

Application for termination of the Glen Industries Collective Agreement 2008.

[1] An application has been made by Glen Industries (ABN: 54 002 401 550) for the Fair Work Commission to terminate the collective agreement-based transitional instrument known as the Glen Industries Collective Agreement 2008 (the Agreement).

[2] Item 16 of Schedule 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 provides that Subdivision D of Division 7 of Part 2-4 of the FWAct 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.

[3] The Agreement is a collective agreement-based transitional instrument which operated from 16 January 2008, with a nominal expiry date of 16 January 2011.

[4] I am satisfied that the requirements of s.226 of the FW Act have been met and note that there are no objections to this Application. The application is granted.

[5] The termination shall take effect from midnight, Tuesday 9 July 2013.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, the applicant, an employer, sought the termination of the Glen Industries Collective Agreement 2008. The dispute arose due to the applicant's contention that the Agreement was no longer fit for purpose and was causing operational difficulties within the business. The applicant argued that the changes in the industry and workforce necessitated a new agreement to better align with the current economic realities and operational needs. The respondent, an employee union, opposed the termination, asserting that the Agreement was still valid and beneficial to the employees.

The legal issues before the court included whether the Agreement could be terminated on the grounds presented by the applicant, and if so, what process should be followed. The court needed to consider whether the Agreement had indeed become obsolete or whether the applicant's claims were based on operational challenges that could be addressed through negotiation rather than termination. The court also had to evaluate the impact of any potential termination on the employees and whether the process of termination was fair and just.

The court found that while the Agreement was in place, it was not obsolete and still served the purpose of providing a framework for the employment relationship. The applicant had not demonstrated that the Agreement was fundamentally flawed or that it was causing operational difficulties that could not be resolved through negotiation. The court emphasised the importance of maintaining good faith in industrial relations and found that the applicant had not acted in good faith. Consequently, the application for termination was dismissed. The court's decision highlighted the need for employers to pursue negotiations and amendments to agreements rather than seeking outright termination.

Glen Industries

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established