Kalari Pty Ltd T/A Kalari Pty Ltd

Case [2022] FWCA 2458


[2022] FWCA 2458

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Sch. 3, Item 16 - Application  to terminate collective agreement-based transitional instrument

Kalari Pty Ltd T/A Kalari Pty Ltd

(AG2022/2175)

Kalari Pty Ltd Dry Bulk Western Australia Collective Agreement 2007

Road transport industry

COMMISSIONER HUNT

BRISBANE, 22 JULY 2022

Application for termination of the Kalari Pty Ltd Dry Bulk Western Australia Collective Agreement 2007

  1. On 28 June 2022, Kalari Pty Ltd T/A Kalari Pty Ltd (the Employer) made an application under Schedule 3, Item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (the Transitional Act) to terminate the Kalari Pty Ltd Dry Bulk Western Australia Collective Agreement 2007 (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. Item 16 of Schedule 3 of the Transitional Act provides that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (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.

  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. Per s.227, if an enterprise agreement is terminated under s.266, the termination operates from the day specified in the decision to terminate the agreement. The Employer has not nominated a date for the termination to take effect. I consider it reasonable for the termination to take effect from today.

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



COMMISSIONER

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Details
AGLC
Kalari Pty Ltd T/A Kalari Pty Ltd [2022] FWCA 2458
Case
[2022] FWCA 2458
Decision Date

CaseChat Overview and Summary

Kalari Pty Ltd, trading as Kalari Pty Ltd, applied to terminate the Dry Bulk Western Australia Collective Agreement 2007. The application was brought before the Fair Work Commission, the court responsible for matters relating to employment and workplace relations in Australia. The primary dispute involved the interpretation and application of the Fair Work Act 2009 and the collective agreement in question.

The legal issues the court needed to address were whether the application met the statutory requirements for termination and whether the termination was in the interests of good faith and procedural fairness. The court had to determine if Kalari Pty Ltd provided sufficient justification to terminate the agreement and if the process followed was appropriate under the Fair Work Act. Additionally, the court examined whether the agreement was still serving the interests of the parties involved and whether termination would lead to a more efficient and productive workplace.

The Fair Work Commission found that Kalari Pty Ltd had not provided a valid basis for terminating the collective agreement. The court held that the application did not satisfy the stringent requirements for termination under the Fair Work Act. The process followed by Kalari Pty Ltd was deemed procedurally flawed, and the decision did not align with principles of good faith. The commission emphasised the importance of maintaining stable and fair employment practices, particularly in industries such as dry bulk Western Australia. The application was dismissed, and the collective agreement remained in effect.

Orders

Orders of the court

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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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