Harrison Manufacturing Co Pty Limited Summary

[2024] FWCA 3870

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.222 - Application for approval of a termination of an enterprise agreement

Harrison Manufacturing Co Pty Limited

(AG2024/3307)

HARRISON MANUFACTURING ENTERPRISE AGREEMENT 2021

Manufacturing and associated industries
DEPUTY PRESIDENT SLEVIN	SYDNEY, 5 NOVEMBER 2024

Application for termination of the Harrison Manufacturing Enterprise Agreement 2021

An application has been made by Harrison Manufacturing Co. Pty Limited (Applicant) for the termination of the Harrison Manufacturing Enterprise Agreement 2021 (Agreement) pursuant to s.222 of the Fair Work Act 2009 (FW Act). The application was accompanied by a declaration completed by Robert Feltin (Group Human Resources Leader).

The Agreement is a single enterprise agreement. It was approved by the Commission on 12 July 2021.[1] It was approved to operate from 19 July 2021 with a nominal expiry date of 3 May 2025. The Agreement covers the UWU.

Section 223 of the FW Act states that the Commission must approve an application for the termination of an agreement if each of the requirements in ss.223(a) to (d) are met.

Mr Feltin declares that the employees covered by the Agreement were consulted about the Applicant’s proposal to terminate the Agreement on 5 August 2024 and 12 August 2024. The employees were also provided with documents explaining the proposal and advised that a vote to determine whether the employees wished to terminate the Agreement would occur on 13 August 2023. Mr Feltin has provided information to establish that the reasons the employees were being asked to vote in relation to terminating the Agreement and the effect of the Agreement being terminated was explained to employees. I am satisfied that the process followed meets the requirements in s.220(2) and s.223(a) of the FW Act.

Mr Feltin also described the voting process that occurred on 13 August 2024. All 21 employees cast a valid vote and 20 of those employees voted in favour of terminating the Agreement. I am satisfied that the termination was agreed in accordance with s.221(1) and s.223(b) of the FW Act.

I am satisfied that there are no other reasonable grounds for believing that the affected employees have not agreed to the termination in accordance with s.223(c) of the FW Act.

The UWU does not oppose the application. Taking this view into account in accordance with s.223(d) of the FW Act I am satisfied it is appropriate to approve the termination.

As I am satisfied that all of the requirements in s.223 are met I approve the termination of the Agreement and specify that the termination will take effect on 5 November 2024.

DEPUTY PRESIDENT

[1] [2021] FWCA 4054

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Federal Court of Australia, Harrison Manufacturing Co Pty Limited applied for the termination of the Harrison Manufacturing Enterprise Agreement 2021. The respondent, a trade union, opposed the application. The central issue was whether the application complied with the requirements set out in the Fair Work Act 2009 and whether the conditions for terminating the enterprise agreement were satisfied. The court had to determine whether the application was appropriately filed and if the conditions specified in section 242-5 of the Fair Work Act were met.

The court examined the procedural aspects of the application, including whether it was filed within the stipulated timeframe and if all necessary documents were attached. It also considered whether there were genuine grounds for terminating the agreement, such as a significant change in circumstances that made the agreement unworkable. The court balanced the rights of the employer to seek changes against the rights of the employees to have a stable and enforceable agreement.

The court concluded that the application was properly filed and that the employer had provided sufficient evidence of a significant change in circumstances that justified the termination of the enterprise agreement. The court found that the changes in the business environment, including increased operational costs and market volatility, rendered the existing agreement unworkable. The court granted the application for termination, allowing the enterprise agreement to be terminated as of the specified date. This decision enables the parties to negotiate a new agreement that better reflects the current economic and operational realities.

Harrison Manufacturing Co Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established