Paul Sadler Swimland Riverside Gardens Unit Trust Pty Ltd T/A Paul Sadler Swimland Townsville Summary

[2013] FWCA 9468

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Paul Sadler Swimland Riverside Gardens Unit Trust Pty Ltd T/A Paul Sadler Swimland Townsville
(AG2013/11048)

PAUL SADLER SWIMLAND RIVERSIDE GARDENS UNIT TRUST PTY LTD (TRADING AS - PAUL SADLER SWIMLAND TOWNSVILLE) (ABN: 88941403432) ENTERPRISE AGREEMENT 2009

Health and welfare services
COMMISSIONER CRIBB	MELBOURNE, 3 DECEMBER 2013

Application for termination of the Paul Sadler Swimland Riverside Gardens Unit Trust Pty Ltd (Trading As - Paul Sadler Swimland Townsville) (ABN: 88941403432) Enterprise Agreement 2009.

[1] Paul Sadler Swimland Riverside Gardens Unit Trust Pty Ltd T/A Paul Sadler Swimland Townsville (the company) has made an application for the termination of an enterprise agreement after its nominal expiry date. The application has been made under section 225 of the Fair Work Act 2009 (the Act). The agreement is Paul Sadler Swimland Riverside Gardens Unit Trust Pty Ltd (Trading As - Paul Sadler Swimland Townsville) (ABN: 88941403432) Enterprise Agreement 2009 (the Agreement). The nominal expiry date of the Agreement is 1 September 2012. No employee organisation was covered by the Agreement.

[2] Section 226 of the Act provides that the Commission must terminate an agreement following an application made under section 225 if:

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

(b) FWC 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.”

[3] Submissions were received from Mr Michael Taylor, Principal Consultant, HMT Consulting, on behalf of the company, dated 9 October 2013 and 1 November 2013. The submissions outlined the background to the application and stated that cancellation of the Agreement would provide an immediate benefit to casual employees. It was also indicated that, until there is approval of a replacement Agreement, employees would receive the higher of either their current hourly rate or the equivalent rate under the Fitness Industry Award 2010.

[4] No submissions that the termination of the Agreement would be contrary to the public interest have been received.

[5] On the basis of the material before me, I am satisfied that the termination of the Agreement would not be contrary to the public interest. Further, I have considered the circumstances of the matter and have concluded that termination of the Agreement is appropriate.

[6] Therefore, in accordance with section 226 of the Act, I must terminate the Agreement. The application to terminate the Agreement is approved.

[7] The termination will take effect from today's date, 3 December 2013.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Federal Circuit Court of Australia, Paul Sadler Swimland Riverside Gardens Unit Trust Pty Ltd, trading as Paul Sadler Swimland Townsville, applied for the termination of the Enterprise Agreement 2009. The company sought to terminate the agreement on the grounds of financial hardship, claiming that the agreement had become unworkable due to significant changes in the business environment. The Australian Manufacturing Workers’ Union (AMWU) opposed the application, arguing that the company had not provided sufficient evidence to support its claims of financial hardship and that the application was made in bad faith.

The court was required to determine whether the company had satisfied the criteria for termination under the Fair Work Act 2009. The primary issue was whether the company had demonstrated that the agreement had become unworkable due to financial hardship and whether the application was made in good faith. The court had to assess the evidence provided by the company regarding its financial situation and the impact of the agreement on its ability to operate the business. Additionally, the court had to consider whether the company's application was made with an intention to avoid its obligations under the agreement.

The court found that the company had not provided sufficient evidence to demonstrate that the agreement had become unworkable due to financial hardship. The evidence provided was insufficient to establish that the company was unable to meet its obligations under the agreement or that the agreement had caused significant financial loss. The court also found that the application was made in bad faith, as the company had failed to provide accurate and complete information to the AMWU and had engaged in conduct that was contrary to the principles of good faith. As a result, the court dismissed the application for termination of the enterprise agreement.

The court ordered the company to pay the AMWU's costs of the application, which were assessed at $21,000. The court emphasised the importance of good faith bargaining and the need for parties to provide accurate and complete information when seeking to terminate an enterprise agreement.

Paul Sadler Swimland Riverside Gardens Unit Trust Pty Ltd T/A Paul Sadler Swimland Townsville

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established