Kalari Pty Ltd T/A Kalari Pty Ltd

Case [2022] FWCA 2460


[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

  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 (Brisbane Visy Drivers) Collective Agreement 2009 (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 2460
Case
[2022] FWCA 2460
Decision Date

CaseChat Overview and Summary

Kalari Pty Ltd applied to terminate the Kalari Pty Ltd (Brisbane Visy Drivers) Collective Agreement 2009. The application was heard in the Fair Work Commission. The applicants sought to terminate the agreement on the basis that it had been rendered inoperative due to a change in the composition of the workforce, rendering the agreement no longer applicable to a majority of the employees. The respondents argued that the application should be dismissed as the changes in the workforce did not warrant termination of the agreement.

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

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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