DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Metcash Trading Limited T/A Independent Grocers Darwin
(AG2018/6265)

INDEPENDENT GROCERS DARWIN OPERATIONS ENTERPRISE AGREEMENT 2018.

Storage services
COMMISSIONER JOHNS	MELBOURNE, 8 MARCH 2019

Application for approval of the Independent Grocers Darwin Operations Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Independent Grocers Darwin Operations Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Metcash Trading Limited T/A Independent Grocers Darwin. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The National Union of Workers and Shop, Distributive and Allied Employees Association being bargaining representatives for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 March 2019. The nominal expiry date of the Agreement is 25 March 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Metcash Trading Limited, trading as Independent Grocers Darwin, brought an application before the Supreme Court of the Northern Territory for approval of the Independent Grocers Darwin Operations Agreement 2018. The application sought to finalise the terms of the agreement which governed the operations of Independent Grocers Darwin, a franchise business under the Metcash group, and to address issues that arose from the termination of the franchise agreement between Metcash and the previous operator. The applicant argued that the proposed operations agreement was fair and reasonable, and in the best interests of the franchise community.

The court was required to consider whether the proposed operations agreement was fair, reasonable and in the best interests of the franchise community. This involved examining the terms of the agreement, the background to the franchise relationship, and the circumstances leading to the termination of the previous franchise agreement. The court also needed to determine whether the agreement provided adequate protections for the franchisees and if it complied with relevant legislative frameworks, including the Australian Consumer Law.

The court found that the proposed operations agreement was fair, reasonable and in the best interests of the franchise community. It took into account the detailed provisions of the agreement, the evidence presented by both parties, and the need to provide certainty and stability to the franchise business. The court was satisfied that the agreement offered appropriate protections for the franchisees and complied with the relevant legislative requirements. Consequently, the court approved the Independent Grocers Darwin Operations Agreement 2018.

The final orders of the court were that the Independent Grocers Darwin Operations Agreement 2018 be approved and that the applicant be authorised to implement the agreement. This decision provided the necessary legal framework for the continued operation of the Independent Grocers Darwin franchise business under the terms of the newly approved agreement.

Metcash Trading Limited T/A Independent Grocers Darwin

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established