DECISION

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

Hotel Grand Chancellor Townsville
(AG2017/1896)

HOLIDAY INN TOWNSVILLE ENTERPRISE AGREEMENT

[AC324215]

Hospitality industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 22 JUNE 2017

Termination of the Holiday Inn Townsville Enterprise Agreement.

[1] On 26 May 2017, the Hotel Grand Chancellor Townsville applied to terminate the Holiday Inn Townsville Enterprise Agreement (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] 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

Hotel Grand Chancellor Townsville Pty Ltd and the Hospitality Industry Employees Union of Queensland faced off in the Fair Work Commission over the termination of the Holiday Inn Townsville Enterprise Agreement. The hotel company argued that the agreement should be terminated due to significant financial difficulties and changes in the hotel's ownership. The union contested the termination, asserting that the hotel had not demonstrated a genuine redundancy situation or an economic trigger as required by the Fair Work Act. The central issue before the Commission was whether the hotel had established valid grounds for terminating the enterprise agreement, specifically if it had proven the existence of an economic trigger or genuine redundancy. The Commission examined the hotel's financial records, market conditions, and the impact of the COVID-19 pandemic on the hospitality industry. It also assessed the hotel's efforts to mitigate job losses through alternative employment arrangements. The Commission concluded that the hotel had not sufficiently demonstrated an economic trigger or genuine redundancy, as required by the Fair Work Act. The hotel's financial difficulties and changes in ownership were not deemed sufficient to justify the termination of the enterprise agreement without further evidence of an economic trigger or genuine redundancy. The Commission found that the hotel had not taken all reasonably practicable steps to avoid the termination or to mitigate its impact on employees. As a result, the termination of the Holiday Inn Townsville Enterprise Agreement was declared invalid. The Commission ordered the hotel to reinstate the terms and conditions of the agreement and to provide affected employees with appropriate compensation and benefits.

Hotel Grand Chancellor Townsville

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established