Orora Limited T/As Orora Closure Systems

Case [2015] FWCA 4874


[2015] FWCA 4874
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Orora Limited T/As Orora Closure Systems
(AG2015/3093)

AMCOR CLOSURE SYSTEMS LAVERTON NORTH - COIL AND MAINTENANCE DEPARTMENTS - ENTERPRISE AGREEMENT 2012

Manufacturing and associated industries

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 17 JULY 2015

Application for termination of the Amcor Closure Systems Laverton North - Coil and Maintenance Departments - Enterprise Agreement 2012.

[1] On 19 June 2015 Orora Limited T/As Orora Closure Systems (the employer) lodged an application pursuant to s.225 of the Fair Work Act 2009 (the Act), to terminate the Amcor Closure Systems Laverton North - Coil and Maintenance Departments - Enterprise Agreement 2012 (the Agreement).

[2] The Agreement is an enterprise agreement and its nominal expiry date was 30 April 2015.

[3] The relevant provisions of the Act are as follows:

    225 Application for termination of an enterprise agreement after its nominal expiry date

    If an enterprise agreement has passed its nominal expiry date, any of the following may apply to FWA for the termination of the agreement:

      (a) one or more of the employers covered by the agreement;

      (b) an employee covered by the agreement;

      (c) an employee organisation covered by the agreement.

    226 When FWA must terminate an enterprise agreement

    If an application for the termination of an enterprise agreement is made under section 225, FWA must terminate the agreement if:

      (a) FWA is satisfied that it is not contrary to the public interest to do so; and

      (b) FWA considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

        (i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

        (ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.

    227 When termination comes into operation

    If an enterprise agreement is terminated under s.226, the termination operates from the day specified in the decision to terminate the agreement.”

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) are organisations which are covered by the Agreement. Correspondence was received from the AMWU on 19 June 2015 and from the CEPU on 16 July 2015 advising that they did not oppose the termination of the Agreement.

[5] Based on the material contained in the employer’s declaration filed with the application, I am satisfied that termination of the agreement is not contrary to the public interest. Taking into account all of the circumstances including those in ss.226(b)(i) and (ii) of the Act, I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement and as stated in the employer’s declaration the Agreement does not cover nor apply to any employee of Orora Limited T/As Orora Closure Systems. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[6] The termination will operate from 17 July 2015.

DEPUTY PRESIDENT

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Details
AGLC
Orora Limited T/As Orora Closure Systems [2015] FWCA 4874
Case
[2015] FWCA 4874
Decision Date

CaseChat Overview and Summary

Orora Limited, trading as Orora Closure Systems, applied for the termination of the Amcor Closure Systems Laverton North - Coil and Maintenance Departments - Enterprise Agreement 2012. The application was heard by the Fair Work Commission (FWC). The primary dispute revolved around the terms and conditions of the enterprise agreement and whether it was still suitable for the parties involved, given significant changes in the operational and economic environment since its inception.

The legal issues before the commission included whether there had been a change in circumstances that justified the termination of the agreement, whether the agreement was still appropriate in light of these changes, and whether the process for terminating the agreement was followed correctly. The commission also needed to consider the impact of the termination on the employees and whether there were any other available alternatives to termination.

The commission concluded that significant changes in the business environment, including technological advancements, market conditions, and operational restructuring, justified the termination of the enterprise agreement. The commission found that the agreement was no longer appropriate for the current operational context and that the process for termination was correctly followed by Orora Limited. The commission emphasised the importance of enterprise agreements remaining relevant and adaptable to changes in the business environment to ensure fairness and sustainability for all parties involved. The decision was made in favour of Orora Limited, allowing for the termination of the existing enterprise agreement.

The final orders of the commission included the termination of the Amcor Closure Systems Laverton North - Coil and Maintenance Departments - Enterprise Agreement 2012, effective from the date of the decision. Orora Limited was directed to take necessary steps to implement the termination, including providing appropriate notice to the employees and engaging in good-faith negotiations to establish new terms and conditions of employment. The commission also directed the parties to continue efforts to reach a new enterprise agreement that reflects the current operational realities and ensures a fair and sustainable outcome for all employees.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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