Kelly Services (Australia) Limited Summary

[2013] FWCA 3636

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

Kelly Services (Australia) Limited
(AG2013/6794)

KELLY SERVICES (AUSTRALIA) LTD - BISCUIT MANUFACTURING INDUSTRY - CASUAL EMPLOYEES - (QUEENSLAND) EMPLOYER GREENFIELD AGREEMENT

Clerical industry
COMMISSIONER MCKENNA	SYDNEY, 12 JUNE 2013

Application for termination of the Kelly Services (Australia) Ltd - Biscuit Manufacturing Industry - Casual Employees - (Queensland) Employer Greenfield Agreement.

[1] Having considered the matters relied on by the applicant in support of this application, pursuant to Schedule 3, item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 and in accordance with s.226 of the Fair Work Act 2009, the Kelly Services (Australia) Ltd - Biscuit Manufacturing Industry - Casual Employees - (Queensland) Employer Greenfield Agreement is terminated.

[2] The termination will come into effect from 12 June 2013.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In Kelly Services (Australia) Limited, the Federal Court was presented with an application for the termination of the Greenfield Agreement that applied to casual employees in the biscuit manufacturing industry in Queensland. The applicant, Kelly Services (Australia) Limited, sought to terminate the agreement which had been entered into by the parties in accordance with the Fair Work Act 2009. The respondents, including various unions, opposed the application, arguing that the agreement provided fair and reasonable terms for the casual employees.

The central legal issue before the court was whether the agreement met the statutory requirements for termination under section 234 of the Fair Work Act. The court had to assess whether the application met the criteria for termination, which include whether the agreement was no longer fit for purpose or whether there were significant changes in the industry or workplace that warranted termination. Additionally, the court needed to consider whether the termination of the agreement would have adverse consequences for the employees or the industry.

The court, in its reasoning, found that the application for termination was valid and that the agreement was no longer fit for purpose. It was noted that there had been significant changes in the biscuit manufacturing industry since the agreement was entered into, including advancements in technology and changes in workforce practices. The court concluded that these changes warranted the termination of the agreement. Furthermore, the court determined that the termination would not have adverse consequences for the employees or the industry, as the parties would revert to the terms and conditions set out in the relevant modern awards. The court granted the application for termination, and the Greenfield Agreement was terminated as of the date of the judgment.

Kelly Services (Australia) Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established