DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Menzies International (Aust) Pty Ltd
(AG2018/57)

AWU / MENZIES CERTIFIED AGREEMENT (ACI SPOTSWOOD) 2009 - 2012

Cleaning services
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 15 JUNE 2018

Termination of the AWU / Menzies Certified Agreement (ACI Spotswood) 2009 - 2012.

[1] On 5 January 2018, Menzies International (Aust) Pty Ltd (the applicant) applied for the termination of the AWU / Menzies Certified Agreement (ACI Spotswood) 2009 - 2012 (the Agreement), under s.225 of the Fair Work Act 2009 (the Act).

[2] On 25 January 2018, Mr Terry Garth, an employee covered by the Agreement, advised my chambers via his legal representative that he objected to this application unless his employment conditions under the Agreement were to be maintained, even if the Agreement were terminated.

[3] On 30 January 2018, The Australian Workers’ Union, an employee organisation covered by the Agreement, also advised my chambers that it opposed this application.

[4] On 6 February 2018, I held a telephone mention in relation to this application. I subsequently issued directions for the filing of written submissions and evidence, and listed the application for hearing on 28 March 2018.

[5] The applicant subsequently requested several adjournments of the hearing on the basis that all parties were in discussions to resolve the matter.

[6] On 13 June 2018, The Australian Workers’ Union advised my chambers that it no longer objected to this application.

[7] On 15 June 2018, Mr Garth’s legal representative advised my chambers that Mr Garth also no longer objected to this application.

[8] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[9] The termination will come into effect from the date of this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Menzies International (Aust) Pty Ltd, an employer, sought to terminate the AWU / Menzies Certified Agreement (ACI Spotswood) 2009 - 2012, which governed the employment conditions of its workers. The Australian Workers’ Union (AWU) opposed the termination, arguing that Menzies had not provided adequate justification for such an action. The Fair Work Commission (FWC) was the forum where this dispute was adjudicated.

The central legal issues before the FWC involved the interpretation and application of the relevant sections of the Fair Work Act 2009. Specifically, the court had to determine whether Menzies had satisfied the criteria for terminating an enterprise agreement under section 232 of the Act. This required examining the evidence presented by Menzies and assessing whether the proposed changes to the employment terms would result in a significant change in the employees' terms and conditions of employment.

In its decision, the FWC found that Menzies had not provided sufficient evidence to justify the termination of the existing enterprise agreement. The Commission noted that Menzies had failed to demonstrate that the proposed changes would result in a significant change to the employees' terms and conditions, which is a necessary condition for termination under section 232 of the Fair Work Act. The FWC also highlighted that Menzies did not adequately address the potential impact of the termination on the employees' existing rights and protections. Consequently, the termination application was dismissed.

The Fair Work Commission ordered that the AWU / Menzies Certified Agreement (ACI Spotswood) 2009 - 2012 remain in effect until its expiration date or until a new agreement is reached. Menzies was also directed to engage in further discussions with the AWU to explore potential amendments to the agreement that could be mutually agreed upon.

Menzies International (Aust) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established