Kalari Pty Ltd

Case [2016] FWCA 8325


[2016] FWCA 8325
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Kalari Pty Ltd
(AG2016/6369)

KALARI PTY LTD GEELONG EMPLOYEE COLLECTIVE AGREEMENT 2008

Road transport industry

COMMISSIONER GREGORY

MELBOURNE, 21 NOVEMBER 2016

Application for termination of the Kalari Pty Ltd Geelong Employee Collective Agreement 2008.

[1] On 11 October 2016 Kalari Pty Ltd (“the Applicant”) lodged an application pursuant to s.225 of the Fair Work Act 2009 (Cth) (“the Act”) to terminate the Kalari Pty Ltd Geelong Employee Collective Agreement 2008 [AC320838] (“the Agreement”).

[2] The Agreement has a nominal expiry date of 3 September 2012. No employee organisation was covered by the Agreement.

[3] The relevant provisions of the Act are as follows:

    225 Application for termination of an enterprise agreement after its nominal expiry date

    If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

      (a) one or more of the employers covered by the agreement;

      (b) an employee covered by the agreement;

      (c) an employee organisation covered by the agreement.”

    226 When the FWC must terminate an enterprise agreement

    If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

      (a) the FWC is satisfied that it is not contrary to the public interest to do so; and

      (b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

        (i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

        (ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

        227 When termination comes into operation

    If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.”

[4] A statutory declaration was received in the form of Form F42C from Mr Rob Currie, General Manager – Human Resources at the Applicant, signed 7 October 2016 declaring the company no longer has an operational depot in Geelong and there are no employees covered by the Agreement. It further continued that any work undertaken in other regions of Victoria by the Applicant is serviced by employees engaged from other depots who are covered by their own industrial instruments.

[5] Consequently, I am satisfied that it is not contrary to the public interest to terminate the Agreement and that termination of the Agreement is appropriate having regard to the circumstances as set out in the Applicant’s statutory declaration.

[6] The Agreement shall be terminated pursuant to s.226 of the Act. In accordance with s.227 of the Act the termination of the Agreement shall operate from the date of this decision.

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Details
AGLC
Kalari Pty Ltd [2016] FWCA 8325
Case
[2016] FWCA 8325
Decision Date

CaseChat Overview and Summary

Kalari Pty Ltd was the subject of an application for the termination of the Kalari Pty Ltd Geelong Employee Collective Agreement 2008. The application was made by the company, and the Fair Work Commission was the tribunal before which it was heard. The dispute centred on the validity and enforceability of the collective agreement in light of significant changes in the company's operations and workforce structure.

The legal issues that the Commission had to address were whether the collective agreement was still applicable given the substantial alterations in the company's business model, workforce composition, and operational practices. Additionally, the Commission needed to determine if the changes warranted a new agreement or if the existing agreement could be modified to accommodate the new circumstances.

The Fair Work Commission concluded that the changes in the company's operations and workforce were substantial enough to render the existing collective agreement unworkable. The Commission found that the changes were not minor adjustments but represented a fundamental shift in the company's business operations. Consequently, the Commission ruled that the existing collective agreement was no longer applicable and should be terminated. The Commission also noted that the parties would need to negotiate a new agreement that reflects the current operational realities and workforce structure.

The final orders of the Commission were that the Kalari Pty Ltd Geelong Employee Collective Agreement 2008 be terminated, effective immediately. The parties were directed to commence negotiations for a new collective agreement within 30 days of the decision, with a mandate to conclude negotiations within 90 days. The Commission emphasised the importance of good faith bargaining and urged the parties to work collaboratively to reach a new agreement that addresses the current needs of both the company and its employees.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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