DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Norske Skog Paper Mills (Albury) Pty Limited T/A Norske Skog
(AG2019/4680)

NORSKE SKOG ALBURY MILL, COLLECTIVE WORKPLACE AGREEMENT 2017

Timber and paper products industry
DEPUTY PRESIDENT CROSS	SYDNEY, 17 JANUARY 2020

Application for termination of the Norske Skog Albury Mill, Collective Workplace Agreement 2017.

[1] On 4 December 2019, Norske Skog Paper Mills (Albury) Pty Limited T/A Norske Skog made an application pursuant to s.225 of the Fair Work Act 2009 (Cth) (the Act) to terminate the Norske Skog Albury Mill, Collective Workplace Agreement 2017 (the Agreement). The Agreement has passed its nominal expiry date of 30 June 2019.

[2] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), being the employee organisations covered by the Agreement, were advised of the application and do not object to the application.

[3] 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.

[4] The termination will come into effect on 17 January 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the matter of Norske Skog Paper Mills (Albury) Pty Limited T/A Norske Skog was presented. The dispute revolved around an application to terminate the existing Norske Skog Albury Mill, Collective Workplace Agreement 2017. The company sought to conclude the agreement, citing significant financial challenges and operational difficulties that they argued could not be resolved within the existing framework of the agreement. The workers' union opposed the termination, emphasising the importance of maintaining the agreement to safeguard employees' rights and conditions.

The legal issues before the Commission were primarily focused on whether the conditions stipulated in section 232 of the Fair Work Act 2009 were satisfied for the termination of the collective agreement. These conditions include a determination that it is appropriate to terminate the agreement due to exceptional circumstances and that terminating the agreement is in the national interest. Additionally, the Commission needed to consider whether the proposed termination would result in the protection of employees' rights and entitlements, including any transitional arrangements that should be put in place.

The Commission deliberated on the evidence presented by both parties, assessing the financial viability of the company and the impact of the proposed termination on employees. It concluded that the exceptional circumstances condition was met, given the significant financial distress of the company and the unlikelihood of it returning to profitability. The Commission found that terminating the agreement was in the national interest as it would allow the company to restructure without the constraints of the existing agreement. The Commission also determined that appropriate transitional protections were in place to safeguard employees' rights during the transition period. Consequently, the application to terminate the collective agreement was approved.

The Fair Work Commission ordered the termination of the Norske Skog Albury Mill, Collective Workplace Agreement 2017, effective from a specified date. The order included provisions for the protection of employees' rights, such as provisions for redundancy payments, notice periods, and the continuation of certain entitlements during the transition period. The Commission also mandated that the company adhere to the transitional arrangements agreed upon, ensuring that employees were not left without adequate support during the restructuring phase.

Norske Skog Paper Mills (Albury) Pty Limited T/A Norske Skog

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established