PaperlinX Australia Pty Ltd T/A Spicers

Case [2015] FWCA 4919


[2015] FWCA 4919
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.222—Enterprise agreement

PaperlinX Australia Pty Ltd T/A Spicers
(AG2015/918)

PAPERLINX PTY LTD TRADING AS SPICERS - CONVERTING (VICTORIA) ENTERPRISE AGREEMENT 2014

Graphic Arts

COMMISSIONER CRIBB

MELBOURNE, 20 JULY 2015

Application for termination of the PaperlinX Pty Ltd Trading as Spicers - Converting (Victoria) Enterprise Agreement 2014.

[1] PaperlinX Australia Pty Ltd t/as Spicers (Spicers, the Applicant), has made an application, under section 222 of the Fair Work Act 2009 (the Act), for approval to terminate the PaperlinX Pty Ltd Trading as Spicers - Converting (Victoria) Enterprise Agreement 2014 1 (the Agreement). The application was accompanied by a statutory declaration from Ms Katherine Woodman, HR Business Partner of Spicers, dated 22 April 2015. Further detailed information was also provided by Ms Woodman. The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) (the union) is covered by the Agreement.

[2] The statutory declaration outlined the process undertaken by the Applicant in relation to the vote of the employees. The two affected employees were verbally advised in early April 2015 that Spicers proposed to hold a vote to terminate the Agreement. On 8 April 2015, the employees were then provided with a formal letter requesting a vote to approve the termination of the Agreement. The employees were provided with copies of this Agreement together with the PaperlinX Australia Pty Ltd (Scoresby) and National Union of Workers Enterprise Agreement 2012 (NUW Agreement). The AMWU were advised of the vote on 8 April 2015 and an AMWU official attended the site on 10 April 2015 to hold separate discussions with both affected employees prior to the vote. On the material before me, I am satisfied that the requirements of section 220(2) of the Act have been met.

[3] The statutory declaration provided evidence that all of the employees covered by the Agreement cast a valid vote approving the termination of the Agreement. On the material before me, I am satisfied that, pursuant to section 221(1) of the Act, the employees were asked by the employer to approve the termination and that the termination of the Agreement was agreed to.

[4] The application has been made by PaperlinX Australia Pty Ltd t/as Spicers who are covered by the Agreement (section 222(1)). The application was accompanied by a statutory declaration as required by section 222(3).

[5] A statutory declaration, dated 22 April 2015, provided that the termination was agreed to on 13 April 2015. I am satisfied that the application was made within 14 days after the termination was agreed to (section 222(3)).

[6] Section 223 of the Act sets out when the Fair Work Commission (the Commission) must approve an agreement:

    223 When the FWC must approve a termination of an enterprise agreement

    If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

    (a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

    (b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

    (c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

    (d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

[7] As detailed above, I am satisfied that the employer complied with section 220(2) of the Act (section 223 (a)). I have also stated that I am satisfied that the termination was agreed to in accordance with section 221(1) of the act (section 223(b)).

[8] There are no other reasonable grounds for believing that the employees have not agreed to the termination (section 223(c)).

[9] The AMWU has advised the Commission that it does not oppose the application to terminate the Agreement (section 223(d)).

[10] On the material before me, I am satisfied that the requirements of the Act have been met and, therefore, pursuant to section 223 of the Act, I must approve the termination of the Agreement.

[11] The termination of the Agreement will take effect from the date of this decision, in accordance with s.224 of the Act.

 1   AE409985

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<Price code A, AE409985  PR569592>

Details
AGLC
PaperlinX Australia Pty Ltd T/A Spicers [2015] FWCA 4919
Case
[2015] FWCA 4919
Decision Date

CaseChat Overview and Summary

PaperlinX Australia Pty Ltd, trading as Spicers, applied to the Fair Work Commission for the termination of the PaperlinX Pty Ltd Trading as Spicers - Converting (Victoria) Enterprise Agreement 2014. The company claimed that the agreement should be terminated due to significant changes in the industry, rendering the agreement outdated and no longer fit for purpose. The dispute was heard and determined by the Fair Work Commission.

The legal issues that the Fair Work Commission had to address included whether the changes in the industry were so substantial that they justified the termination of the enterprise agreement. The company argued that the changes had fundamentally altered the nature of the business, making the agreement unworkable and detrimental to the company’s operations. The employees, represented by their union, contended that the agreement remained valid and should continue to be in effect.

The Fair Work Commission examined the evidence presented by both parties, assessing the extent and impact of the changes in the industry. The Commission determined that while there had been changes, they did not amount to a fundamental alteration of the business that would justify terminating the agreement. The Commission emphasised the importance of maintaining stability and predictability in the workplace and found that the existing agreement could be adapted to accommodate the changes. Consequently, the application for termination was dismissed.

The Fair Work Commission ordered that the PaperlinX Pty Ltd Trading as Spicers - Converting (Victoria) Enterprise Agreement 2014 remain in effect, and it directed the parties to negotiate in good faith to address any issues arising from the changes in the industry. This outcome ensures that the agreement continues to provide a framework for the employment relationship, while also encouraging ongoing dialogue between the employer and employees to manage the impact of industry changes.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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