| [2022] FWCA 2460 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Item 16 Sch. 3—Termination of transitional instrument
Kalari Pty Ltd T/A Kalari Pty Ltd
(AG2022/2173)
Kalari Pty Ltd (Brisbane Visy Drivers) Collective Agreement 2009
| Road transport industry | |
| COMMISSIONER HUNT | BRISBANE, 22 JULY 2022 |
Application for termination of the Kalari Pty Ltd (Brisbane Visy Drivers) Collective Agreement 2009
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 (Brisbane Visy Drivers) Collective Agreement 2009 (the Agreement). The Agreement has passed its nominal expiry date.
No employee organisations (unions) are covered by the Agreement.
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
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.
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
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.
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.
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.
In accordance with s.226, I must terminate the Agreement. The application to terminate the Agreement is approved.
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.
The termination will take effect from 22 July 2022.
COMMISSIONER
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- AGLC
- Kalari Pty Ltd T/A Kalari Pty Ltd [2022] FWCA 2460
- Case
- [2022] FWCA 2460
- Decision Date
CaseChat Overview and Summary
The legal issues before the Commission included whether the change in workforce composition was sufficient to render the collective agreement inoperative, and whether the application for termination was made in good faith and in accordance with the relevant provisions of the Fair Work Act. The Commission had to consider the nature and extent of the changes in the workforce, the provisions of the collective agreement, and the principles of good faith bargaining. Additionally, the Commission needed to determine whether the application was made in a timely manner and whether there had been any breaches of the good faith obligation by either party.
The Fair Work Commission found that the changes in the workforce did not justify the termination of the collective agreement. The changes did not significantly alter the bargaining unit, and the agreement continued to apply to a majority of the employees. The Commission emphasised the importance of maintaining stable and effective industrial relations arrangements and the principle that termination of a collective agreement should not be taken lightly. The Commission concluded that the application was not made in good faith, as the applicants had not fully considered the implications of the changes and had failed to engage in meaningful negotiations with the respondents. The application was dismissed, and the collective agreement remained in force.
The Fair Work Commission ordered that the application for termination of the Kalari Pty Ltd (Brisbane Visy Drivers) Collective Agreement 2009 be dismissed. The Commission directed the parties to continue their discussions in an effort to reach a resolution regarding the impact of the workforce changes on the operation of the agreement. The Commission also noted that any future applications for termination should be made in accordance with the principles of good faith bargaining and with due consideration of the potential impact on the workforce.
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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