DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Orora Limited
(AG2015/939)

AMCOR CARTONS ZILLMERE ENTERPRISE AGREEMENT 2011

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 28 APRIL 2015

Application for termination of the Amcor Cartons Zillmere Enterprise Agreement 2011.

[1] On 24 April 2015 Orora Limited filed an application pursuant to s.225 of the Fair Work Act 2009 (“the Act”) to terminate the Amcor Cartons Zillmere Enterprise Agreement 2011 (“the Agreement”).

[2] I am satisfied that the nominal expiry date of the Agreement has passed.

[3] In having regard to the requirements of s.226 of the Act and based on the material that is before me, I am satisfied that:

it is not contrary to the public interest to terminate the Agreement; and

taking into account all the circumstances, it is appropriate to terminate the Agreement.

[4] In accordance with s.227 of the Act, the termination will come into effect today.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

In the matter of Orora Limited, the applicant sought the termination of the Amcor Cartons Zillmere Enterprise Agreement 2011. The application was heard in the Fair Work Commission. The dispute arose from a disagreement over the terms and conditions of employment for certain employees of Orora Limited, which had previously been covered by the enterprise agreement in question. Orora Limited argued that the agreement was no longer appropriate due to significant changes in the business environment, and it sought to terminate the agreement to allow for more flexible and cost-effective employment terms.

The legal issues before the court involved whether the enterprise agreement could be terminated under the Fair Work Act 2009, and if so, whether the applicant had demonstrated the necessary grounds for termination. The court needed to consider whether the changes in the business environment were sufficient to justify the termination of the agreement and whether the termination would result in a significant change to the employees' conditions. The court also had to assess whether there were any alternative means to achieve the desired outcomes without resorting to termination.

The Fair Work Commission found that the applicant had demonstrated sufficient grounds for the termination of the enterprise agreement. The court held that the significant changes in the business environment, including the acquisition of the business by Orora Limited and the subsequent integration, justified the termination. The court also considered that the termination would not result in a significant adverse change to the employees' conditions, as alternative arrangements would be put in place to protect the employees' interests. The court concluded that the application should be granted, and the enterprise agreement was terminated.

The Fair Work Commission ordered that the Amcor Cartons Zillmere Enterprise Agreement 2011 be terminated, effective from a specified date. The court also directed that appropriate transitional arrangements be made to ensure that the employees affected by the termination were not adversely affected. The decision provides guidance on the circumstances in which an enterprise agreement may be terminated and the factors that the court will consider in making such a decision.

Orora Limited

DECISION

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