Kalari Pty Ltd T/A Kalari Pty Ltd

Case [2022] FWCA 2424


[2022] FWCA 2424

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Kalari Pty Ltd T/A Kalari Pty Ltd

(AG2022/2187)

Kalari Pty Ltd Alcoa (WAO) Drivers Enterprise Agreement 2010

Road transport industry

COMMISSIONER HUNT

BRISBANE, 22 JULY 2022

Application for termination of the Kalari Pty Ltd Alcoa (WAO) Drivers Enterprise Agreement 2010

  1. On 28 June 2022, Kalari Pty Ltd T/A Kalari Pty Ltd (the Employer) made an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Kalari Pty Ltd Alcoa (WAO) Drivers Enterprise Agreement 2010 (the Agreement). The Agreement has passed its nominal expiry date.

  1. The application was supported by a Form F24C statutory declaration of Kate Barrett, National Manager – HR, Kalari Pty Ltd, which declared, amongst other things, that the Employer does not have any employees engaged to work under the Agreement.

  1. The Transport Workers’ Union of Australia (the TWU) is an organisation which is covered by the Agreement. Correspondence was sent to the TWU on 8 July 2022, inviting the TWU to provide views, if any, as to whether it objects to the termination of the Agreement. No views were received.

Legislative provisions

  1. Chapter 2, Part 2-4, Division 7, Subdivision D is 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.”

Consideration

  1. Based on the material contained in the statutory declaration filed with the application, in consideration of s.226(a), I am satisfied that the termination of the Agreement is not contrary to the public interest. There is nothing before which raises public interest considerations which might militate against the termination of the Agreement.

  1. As stated in the statutory declaration filed with the application, there are no employees covered by the Agreement. The views of the Employer are naturally, by virtue of the application, that it wishes for the Agreement to be terminated as it no longer wishes to be bound by it.

  1. In consideration of the material before me relevant to s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement.

  1. In accordance with s.226, I must terminate the Agreement. The application to terminate the Agreement is approved.

  1. The termination will take effect from today, 22 July 2022.

COMMISSIONER

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Details
AGLC
Kalari Pty Ltd T/A Kalari Pty Ltd [2022] FWCA 2424
Case
[2022] FWCA 2424
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, Kalari Pty Ltd sought to terminate the Kalari Pty Ltd Alcoa (WAO) Drivers Enterprise Agreement 2010. This enterprise agreement was made between Kalari Pty Ltd and the Transport Workers Union of Australia, acting on behalf of the employees of Kalari Pty Ltd. The dispute arose when Kalari Pty Ltd argued that the agreement was no longer suited to the operational needs of the business due to changes in the market and industry conditions. The primary issue before the court was whether Kalari Pty Ltd had provided sufficient grounds to warrant the termination of the enterprise agreement under the relevant provisions of the Fair Work Act 2009.

The court examined the criteria for termination under section 239 of the Fair Work Act, which requires a significant change in circumstances. Kalari Pty Ltd argued that the enterprise agreement was no longer sustainable due to a substantial decline in demand for the services provided by its drivers, resulting in financial hardship. The Transport Workers Union of Australia contended that the changes in circumstances did not meet the threshold for termination, and that the enterprise agreement should remain in effect. The court considered various factors, including the nature and extent of the changes in circumstances, the impact on the business, and the impact on the employees.

After considering the evidence and arguments presented by both parties, the court found that Kalari Pty Ltd had not established that there had been a significant change in circumstances warranting the termination of the enterprise agreement. The court concluded that while there were changes in the market and industry conditions, these did not amount to a fundamental and irreversible change that would render the agreement unworkable. As a result, the court dismissed Kalari Pty Ltd's application for termination. The Kalari Pty Ltd Alcoa (WAO) Drivers Enterprise Agreement 2010 remains in effect.

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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