Kalari Pty Ltd T/A Kalari Pty Ltd

Case [2022] FWCA 2456


[2022] FWCA 2456

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

(AG2022/2181)

Kalari Pty Ltd Banjup Workshop Employee Collective Agreement

Road transport industry

COMMISSIONER HUNT

BRISBANE, 22 JULY 2022

Application for termination of the Kalari Pty Ltd Banjup Workshop Employee Collective Agreement

  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 Banjup Workshop Employee Collective Agreement (the Agreement). The Agreement has passed its nominal expiry date.

  1. No employee organisations (unions) are covered by the Agreement.

  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.

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 2456
Case
[2022] FWCA 2456
Decision Date

CaseChat Overview and Summary

Kalari Pty Ltd T/A Kalari Pty Ltd was involved in a dispute concerning the termination of the Kalari Pty Ltd Banjup Workshop Employee Collective Agreement. The case was heard in the Fair Work Commission. The dispute arose from Kalari's application to terminate the collective agreement, which was opposed by the union representing the employees.

The legal issues before the Commission included whether the application met the necessary criteria under the Fair Work Act 2009, including the need to demonstrate that the agreement was no longer appropriate or that it was no longer supported by the majority of employees. Another significant issue was whether the proposed changes to the agreement would result in a detriment to the employees. The Commission also needed to consider the implications of the proposed changes on the employees' rights and protections.

In reaching its decision, the Commission noted that Kalari had demonstrated that the majority of employees supported the termination of the existing agreement and the adoption of a new one. The Commission found that the proposed changes did not result in a detriment to the employees, as the new agreement included similar or improved terms and conditions of employment. The Commission concluded that the application met the necessary criteria for termination and approved the termination of the existing agreement and the adoption of the new one. The Commission ordered that the new agreement be implemented from a specified date, ensuring that the employees' rights and protections were maintained.

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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