LINEAGE AUS TRS PTY LTD T/A Lineage

Case [2023] FWCA 2316


[2023] FWCA 2316

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.222—Enterprise agreement

LINEAGE AUS TRS PTY LTD T/A Lineage

(AG2023/2391)

Clerical industry

DEPUTY PRESIDENT LAKE

BRISBANE, 26 JULY 2023

Application for termination of the Emergent Cold Pty Ltd Brisbane - Clerical Employees Enterprise Agreement 2020

  1. On 17 July 2023, Lineage Aus Trs Pty Ltd (Lineage) applied to terminate the Emergent Cold Pty Ltd Brisbane – Clerical Employees Enterprise Agreement 2020 (the Agreement) pursuant to section 222 of the Fair Work Act 2009 (Cth) (the Act).

  1. Lineage relies upon a declaration made by Albert Umansky, Head of Employee Relations and HR Policy.

  1. Emergent Cold Pty Ltd had sold their business to the Lineage and provided a current ASIC search verifying this fact. The employees of Emergent Cold Pty Ltd who had been covered by the Agreement had transferred their employment to Lineage. The Agreement only covers 3 people.

  1. I am required to determine whether Lineage had followed the processes required to terminate this Agreement.

Section 220

  1. I am satisfied that Lineage took all reasonable steps to notify the employees of the voting method, time and place at which the vote will occur per s220(2) of the Act.

  1. Furthermore, I am satisfied Lineage had provided employees a reasonable opportunity for the employees to decide whether they want to approve the Agreement.

  1. Lineage held a meeting with the 3 employees, provided opportunities for the employees to engage in discussions with Lineage Managers, provided documentation of wages and conditions under the new Agreement, had discussions on a proposed staff agreement along with providing an explanatory table of terms and conditions under the staff employment agreement with cross-referencing of the corresponding Agreement and Award terms. These documents were provided to the Commission.

Section 221

  1. 3 out 3 of the employees casted a valid vote through a secret ballot. 2 out of 3 voted to approve the termination of this Agreement. I am satisfied that a majority of the employees who casted a valid vote approving the termination of the Agreement.

Section 222

  1. I am satisfied that the application was made within 14 days after the termination was agreed.

Section 223

  1. I am satisfied that the termination was agreed to by the relevant employees, and I am satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination.

  1. My Associate contacted to confirm with the 3 employees confirming that they had undertaken the termination process and I have no other reasonable grounds for believing that the employees have not agreed to the termination.

  1. As there are no employee organisations, I have not sought their views.

  1. I am satisfied that Lineage had complied with the steps required to terminate the Agreement.

  1. The Agreement is terminated effective at midnight 26 July 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE507021  PR764587>

Details
AGLC
LINEAGE AUS TRS PTY LTD T/A Lineage [2023] FWCA 2316
Case
[2023] FWCA 2316
Decision Date

CaseChat Overview and Summary

The Fair Work Commission was presented with an application by Lineage Aus Trs Pty Ltd, trading as Lineage, seeking to terminate the Emergent Cold Pty Ltd Brisbane – Clerical Employees Enterprise Agreement 2020. Lineage, which had acquired Emergent Cold Pty Ltd, argued that the agreement should be terminated following the sale of the business. The dispute centred on whether Lineage had properly followed the procedural requirements set out in the Fair Work Act 2009 for terminating an enterprise agreement.

The central legal issues before the Deputy President were whether Lineage had adequately notified the employees about the vote on the agreement's termination, provided a reasonable opportunity for employees to make an informed decision, and whether the application for termination was made within the required timeframe. Additionally, the Deputy President needed to determine if there were any other reasonable grounds to believe that the employees had not agreed to the termination.

After reviewing the evidence, the Deputy President found that Lineage had taken all reasonable steps to notify the employees of the voting method, time, and place, as well as providing them with a reasonable opportunity to make an informed decision. This included holding a meeting, facilitating discussions, and providing relevant documentation. Furthermore, the Deputy President concluded that two out of three employees voted to approve the termination, which constituted a majority. The application for termination was made within the required 14 days after the termination was agreed upon. The Deputy President was satisfied that there were no other reasonable grounds to believe that the employees had not agreed to the termination. Consequently, the Deputy President determined that Lineage had complied with the statutory requirements for terminating the agreement.

The Fair Work Commission terminated the Emergent Cold Pty Ltd Brisbane – Clerical Employees Enterprise Agreement 2020 effective at midnight on 26 July 2023.

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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