DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Nufarm Australia Limited
(AG2015/2437)

MASTRA CORPORATION AND NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 14 MAY 2015

Application for termination of the Mastra Corporation and National Union of Workers Enterprise Agreement 2014.

[1] An application was made on 16 April 2015 by Nufarm Australia Ltd for the termination of the Mastra Corporation and National Union of Workers Enterprise Agreement 2014 (the Agreement). The application was filed with the Commission electronically and was copied to Ms Holliday and Mr Portelli of the National Union of Workers (NUW), the employee organisation covered by the Agreement.

[2] The Commission, as currently constituted, is very aware of the background to this matter having dealt with a dispute filed by the NUW in March 2015 in relation to redundancies at 17 - 19 Raymond Rd Laverton, the site at which the Agreement applied, due to Nufarm, who had acquired Mastra Corporation, closing down most of the former operations of Mastra site at 17 - 19 Raymond Rd Laverton.

[3] In the present matter the NUW was given the opportunity to provide its views in relation to the application. The NUW’s response was that it believed the requirements of the Act have been met in regards to this application.

[4] The application in this matter was made under Subdivision C of Division 7 of Part 2-4 of the Act. The application in this matter was accompanied by a statutory declaration in support of the application in the form of Form F24A.

[5] The Commission is satisfied that an application has been made under s.219 of the Act.

[6] The Commission is satisfied that the Applicant has complied with s.220 (including subsection 220(2)) of the Act.

[7] The Commission is satisfied that the termination was agreed to in accordance with s.221(1) of the Act.

[8] The Commission is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination of the Agreement.

[9] Pursuant to s.223 of the Act, the Commission is satisfied that it is appropriate to approve the termination of the Agreement.

[10] The termination of the Agreement operates on and from 17 May 2015.

COMMISSIONER

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CaseChat Overview and Summary

Nufarm Australia Limited recently appeared before the Fair Work Commission, seeking the termination of the Mastra Corporation and National Union of Workers Enterprise Agreement 2014. The enterprise agreement in question governed the terms and conditions of employment for certain employees of Nufarm Australia Limited. The company's application was based on the contention that the enterprise agreement was no longer appropriate due to significant changes in the business environment, which made the continued operation of the agreement detrimental to the company's economic interests.

The central legal issues before the Commission were whether the enterprise agreement could be terminated and, if so, on what grounds. The company argued that substantial changes in the business environment, including market conditions and technological advancements, rendered the agreement obsolete and economically unviable. The National Union of Workers, on the other hand, contended that the agreement should remain in force as it provided essential protections for employees and had not been breached by the company. The Commission had to consider whether the changes in the business environment were indeed significant enough to warrant the termination of the agreement and whether such termination would be in the best interest of the parties involved.

In its decision, the Commission carefully weighed the evidence presented by both parties. It found that the changes in the business environment were indeed substantial and had a significant impact on the economic viability of the enterprise agreement. The Commission determined that the continued operation of the agreement was detrimental to Nufarm Australia Limited's interests, and therefore, termination was warranted. The Commission also noted that the termination would not adversely affect the employees' existing terms and conditions of employment, as transitional arrangements were put in place to ensure continuity for the workforce. Consequently, the Commission granted the application for termination, and the enterprise agreement was set to expire on the specified date.

Nufarm Australia Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established