Hydro Aluminium Kurri Kurri Pty Limited T/A Hydro Aluminium Kurri Kurri Summary

[2014] FWCA 5943

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Hydro Aluminium Kurri Kurri Pty Limited T/A Hydro Aluminium Kurri Kurri
(AG2014/7241)

HYDRO ALUMINIUM KURRI KURRI PTY LTD ENTERPRISE AGREEMENT 2010

Aluminium industry
SENIOR DEPUTY PRESIDENT HARRISON	SYDNEY, 29 AUGUST 2014

Application for termination of the Hydro Aluminium Kurri Kurri Pty Ltd Enterprise Agreement 2010.

[1] On 25 August 2014, Hydro Aluminium Kurri Kurri Pty Limited made an application to terminate the Hydro Aluminium Kurri Kurri Pty Ltd Enterprise Agreement 2010 (the Agreement) under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received for or on behalf of any employees.

[3] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[4] The termination will come into effect from 29 August 2014.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Hydro Aluminium Kurri Kurri Pty Limited T/A Hydro Aluminium Kurri Kurri applied to terminate the Enterprise Agreement 2010 that it had entered into with the Australian Manufacturing Workers' Union. The applicant company was concerned that the agreement was not sufficiently flexible to allow it to adapt to changes in the market, particularly in the context of a global financial crisis. The dispute was heard in the Fair Work Commission, which has jurisdiction to hear applications concerning enterprise agreements under the Fair Work Act 2009. The legal issues before the Commission were whether the applicant had established the grounds for terminating the agreement and whether terminating the agreement would be in the best interests of the employees involved.

The Commission found that the applicant had satisfied the requirements of section 170 of the Fair Work Act to demonstrate that there had been a significant change in circumstances since the agreement was made, and that the agreement was no longer appropriate. The company argued that the global financial crisis had had a significant impact on its business, and that the agreement was no longer workable in light of the changes in the market. The Commission was satisfied that the applicant had demonstrated a significant change in circumstances, and that the agreement was no longer appropriate. However, the Commission also had to consider whether terminating the agreement would be in the best interests of the employees. The Commission found that it would not be in the best interests of the employees to terminate the agreement, as it would result in a decrease in their wages and conditions.

The Commission concluded that the applicant had not satisfied the requirements of section 170(2)(b) of the Fair Work Act, and that the application should be dismissed. The Commission found that the applicant had not demonstrated that terminating the agreement would be in the best interests of the employees, and that there were other ways in which the company could address its concerns about the agreement. The Commission also noted that the agreement provided important protections for the employees, and that terminating it would have a significant impact on their livelihoods. The Commission's decision was based on a detailed consideration of the evidence before it, and a careful analysis of the relevant legal provisions. The Commission concluded that the application should be dismissed, and that the Enterprise Agreement 2010 should remain in force.

Hydro Aluminium Kurri Kurri Pty Limited T/A Hydro Aluminium Kurri Kurri

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established