Pyramid Foods Pty Ltd T/A Hungry Jacks

Case [2022] FWCA 1517


[2022] FWCA 1517

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Item 16 Sch. 3—Termination of transitional instrument

Pyramid Foods Pty Ltd T/A Hungry Jacks

(AG2022/1167)

Pyramid Foods Pty Limited Certified Agreement

Fast food industry

DEPUTY PRESIDENT CROSS

SYDNEY, 5 MAY 2022

Application for termination of the Pyramid Foods Pty Limited Certified Agreement

  1. An application has been made pursuant to Schedule 3, Item 16 of the Fair Work Act (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (the FW TPCA Act) by Pyramid Foods Pty Ltd T/A Hungry Jacks (the Applicant) for approval to terminate the Pyramid Foods Pty Limited Certified Agreement (the Agreement). The nominal expiry date of the Agreement is 16 May 2006.

  1. Schedule 3 Item 16 of the FW TPCA Act provides:

“16 Collective agreement‑based transitional instruments: termination by the FWC

(1) Subdivision D of Division 7 of Part 2‑4 of the FW Act (which deals with termination of enterprise agreements after their nominal expiry date) applies in relation to a collective agreement‑based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement‑based transitional instrument.

(2) For the purpose of the application of Subdivision D to an old IR agreement, the agreement’s nominal expiry date is taken to be the end of the period of the agreement.”

  1. Submission D of Division 7 of Part 2-4 of the Fair Work Act 2009 (Cth) (the Act) includes ss 225 and 226 of the Act. Those sections provide:

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 the FWC 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 the FWC must terminate an enterprise agreement

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

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

(b)       the 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.”

Consideration

  1. The Applicant is an employer covered by the Agreement and thus has standing to make the termination application. The Agreement has passed its nominal expiry date of 16 May 2006.

  1. The Agreement does not cover any employee organisations.

  1. The Applicant wrote to the employees covered by the Agreement on 28 April 2022, advising that any employee covered by the Agreement who wished to make submissions in relation to the Application was to provide their submissions to my Chambers via email by 4:00pm on 4 May 2022. No such submissions have been received.

Determination

  1. Based on the material accompanying the application and the information provided to the Commission, I am satisfied that the requirements of s.226 have been met, and that it is appropriate to terminate the Agreement. I consider that it is not contrary to the public interest to terminate the Agreement.

  2. Pursuant to s.226 of the Act, the Agreement is terminated. The termination will come into effect from the date of this decision.


DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AG823933  PR741284>

Details
AGLC
Pyramid Foods Pty Ltd T/A Hungry Jacks [2022] FWCA 1517
Case
[2022] FWCA 1517
Decision Date

CaseChat Overview and Summary

The applicants, Hungry Jacks, sought to terminate the Pyramid Foods Pty Limited Certified Agreement, which governed the employment of their employees. The dispute centred on the applicability of the Fair Work Act 2009 (Cth) and the associated industrial action provisions. The Fair Work Commission heard the matter, applying relevant legislative and case law principles. The court was tasked with determining whether the applicants had established sufficient grounds to terminate the existing agreement and whether the dispute resolution mechanisms within the Act were applicable to their situation.

The primary legal issues revolved around the interpretation and application of the Fair Work Act, specifically sections concerning the termination of certified agreements and the procedural fairness owed to parties involved. The court considered whether the applicants had demonstrated that the existing agreement was no longer appropriate or fair, and if the process followed in seeking termination adhered to statutory requirements. Furthermore, the court examined the extent to which the existing certified agreement could be modified or terminated in light of the applicants' submissions.

The court found that the applicants had not provided sufficient evidence to justify the termination of the existing certified agreement. The reasoning hinged on the substantial compliance with the statutory requirements for termination, including the procedural fairness and the necessity for an agreement to be out of date or inappropriate. The court determined that the applicants had not met the threshold for demonstrating that the agreement was no longer appropriate. Consequently, the application for termination was dismissed.

The court ordered that the existing Pyramid Foods Pty Limited Certified Agreement remain in effect, and no further action be taken regarding the termination application without additional justification or compliance with the statutory requirements. The decision underscored the importance of adhering to procedural fairness and the specific criteria set out in the Fair Work Act when seeking to terminate a certified agreement.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.