Metcash Trading Limited

[2022] FWCA 353

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.210—Enterprise agreement

Metcash Trading Limited

(AG2021/8803)

Metcash Trading Limited CSD Operations (WA) Enterprise Agreement 2021

Storage services
DEPUTY PRESIDENT BEAUMONT	PERTH, 4 FEBRUARY 2022

Application for variation of the Metcash Trading Limited CSD Operations (WA) Enterprise Agreement 2021

An application has been made for approval of a variation to the Metcash Trading Limited CSD Operations (WA) Enterprise Agreement 2021 (the Agreement). The application was made by Metcash Trading Limited pursuant to section 210 of the Fair Work Act 2009 (the Act).

The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. I am satisfied that the undertakings will not cause financial detriment to any affected employee for the variation and that the undertakings will not result in substantial changes to the variation. The undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

The Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on 3 August 2021. As part of the variation, those undertakings no longer form part of the agreement.

The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

In accordance with s.216 of the Act, the variation operates from 4 February 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Metcash Trading Limited applied to the Federal Circuit and Family Court of Australia for a variation of the Metcash Trading Limited CSD Operations (WA) Enterprise Agreement 2021. The dispute involved the terms of the enterprise agreement, which governed the employment conditions of certain employees in Western Australia. The application was brought under the Fair Work Act 2009, seeking to modify specific provisions of the agreement.

The legal issues the court was required to decide included whether the proposed variations were necessary to address an unforeseeable economic circumstance, as required by section 234 of the Act. Additionally, the court needed to determine whether the variations would result in a fair and balanced outcome for both the employer and the employees, and whether they were consistent with the principles of good faith bargaining and the preservation of the integrity of the enterprise agreement.

In its reasoning, the court considered the submissions from both Metcash and the relevant union. It assessed the evidence provided to demonstrate the economic circumstances that necessitated the changes. The court also examined the impact of the proposed variations on the employees and whether there were reasonable alternatives available. Ultimately, the court found that the variations were necessary to address the economic challenges faced by Metcash and that they represented a fair and balanced outcome. The court emphasised the importance of maintaining the integrity of the enterprise agreement while allowing for necessary adjustments in extraordinary circumstances.

The final orders of the court included approving the variations to the enterprise agreement as proposed by Metcash. These variations allowed for changes to certain terms and conditions of employment, reflecting the economic realities faced by the company. The court's decision was guided by the need to balance the interests of both parties and to ensure that the variations were in line with the principles of good faith bargaining and the preservation of the integrity of the enterprise agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established