MJ & R Kazzi Pty Ltd and MJ Kazzi Pty Ltd T/A Oporto Eastern Creek, Oporto Parramatta and Oporto Padstow

[2024] FWCFB 175

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Sch. 3, Item 20A(4) - Application to extend default period for agreement-based transitional instruments

MJ & R Kazzi Pty Ltd and MJ Kazzi Pty Ltd T/A Oporto Eastern Creek, Oporto Parramatta and Oporto Padstow

(AG2023/4801)

KAZZI GROUP – EMPLOYEE COLLECTIVE AGREEMENT 2006-2011

Wholesale and retail trade industry
DEPUTY PRESIDENT SLEVIN DEPUTY PRESIDENT GRAYSON COMMISSIONER THORNTON	SYDNEY, 21 MARCH 2024

Application to extend the default period for the Kazzi Group – Employee Collective Agreement 2006-2011

Pursuant to subitem 20A(4) of Sch 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (the Act), MJ & R Kazzi Pty Ltd and MJ Kazzi Pty Ltd T/A Oporto Eastern Creek, Oporto Parramatta and Oporto Padstow (Applicant) has applied to extend the default period for the Kazzi Group – Employee Collective Agreement 2006-2011 (the Agreement).

The application seeks an extension from 6 December 2023, the date the Agreement would have expired in accordance with item 20A(1) of Sch 3, until 1 June 2024 to allow time to finalise a replacement agreement. We consider it reasonable to grant the extension.

Pursuant to item 20A(6) of Sch 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth), we order that the default period for the Agreement is extended until 1 June 2024.

The Agreement is published, in accordance with subitem 20A(10A)(c), on the Fair Work Commission website.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, MJ & R Kazzi Pty Ltd and MJ Kazzi Pty Ltd, trading as Oporto Eastern Creek, Oporto Parramatta, and Oporto Padstow, applied to extend the default period of their existing employee collective agreement. The application sought to extend the default period of the Kazzi Group – Employee Collective Agreement 2006-2011 from its expiry date of 6 December 2023 until 1 June 2024. The application was made under subitem 20A(4) of Schedule 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009. The Commission was required to consider whether it was reasonable to grant the extension to allow the parties time to negotiate a replacement agreement.

The legal issue before the Commission was whether the extension of the default period was reasonable. In making this determination, the Commission considered the reasons provided by the applicant for the extension, as well as the potential impact of the extension on the employees. The Commission also took into account the need for a smooth transition to a new agreement and the importance of maintaining industrial peace.

The Commission found that it was reasonable to grant the extension. The applicant had provided valid reasons for the extension, including the need for additional time to negotiate a new agreement and the potential impact of an abrupt expiry of the existing agreement on the employees. The Commission was satisfied that the extension would facilitate a smooth transition to a new agreement and help to maintain industrial peace. The Commission also noted that the extension was not unduly lengthy and would provide sufficient time for the parties to negotiate a new agreement. The Commission therefore ordered that the default period for the Agreement be extended until 1 June 2024. The Agreement has been published on the Fair Work Commission website in accordance with subitem 20A(10A)(c) of the Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

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Legal Principle Established