DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Sakata Rice Snacks Australia Pty Ltd
(AG2020/2117)

SAKATA RICE SNACKS AUSTRALIA PTY LTD AGREEMENT 2016-2019

Food, beverages and tobacco manufacturing industry
COMMISSIONER YILMAZ	MELBOURNE, 30 JULY 2020

Application for termination of the Sakata Rice Snacks Australia Pty Ltd Agreement 2016-2019.

[1] Sakata Rice Snacks Australia Pty Ltd has made an application for the FairWork Commission (Commission) to terminate the Sakata Rice Snacks Australia Pty Ltd Agreement 2016-2019 (Agreement) pursuant to s.225 of the Fair Work Act 2009 (FW Act). The application was made on 20 July 2020.

[2] On 29 July 2020, I conducted a mention hearing by telephone with Mr Harry Venner of the Applicant, Mr John Mitchell of Mapien representing the Applicant, and AMWU Organiser Mr Robert Nguyen in attendance. In addition to the AMWU, the other relevant employee organisations covered by the Agreement are the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (ETU) and the United Workers’ Union (UWU). All relevant employee organisations were notified of the mention. Only the AMWU attended the mention.

[3] At the mention, the Applicant submitted in support of the application and Form F24C – Statutory declaration, that the reason they seek for the Agreement to be terminated is that there are currently no employees covered by the Agreement.

[4] The Agreement applies to all persons who perform work in or in connection with manufacture, maintenance or preparation for sale of rice snacks, excluding managers, officers, senior executives, supervisors and administrative staff. Further, the Agreement applies to production operations located at 145 Fitzgerald Road Laverton 3026.

[5] The Applicant submitted that the production operations performed under the Agreement are no longer in operation, the site was closed and sold in February 2019 and all production employees were made redundant and paid out their entitlements. The production operation was sent to Cambodia.

[6] Further, the Agreement passed its nominal expiry date on 8 June 2019. Having regard to the fact that there are no longer any employees who are covered by the Agreement and given that all employees have been paid out their redundancy entitlements, it follows that the Agreement is no longer relevant.

[7] Mr Nguyen on behalf of the AMWU supports the application and confirms that the operation is no longer in existence and that employees were paid out their entitlements. Further, following the mention, the ETU notified my Chambers that they do not object to the application.

[8] Having regard to the materials lodged in support of the application and the submissions of the parties, I am satisfied that it is not contrary to the public interest to terminate the agreement. The agreement has passed its nominal expiry date, there are no employees covered by the agreement and the operation has permanently closed.

[9] Pursuant to s.225 of the FW Act and having considered and being satisfied about each of the matters contained in s.226 of the Act, the Agreement is terminated.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Sakata Rice Snacks Australia Pty Ltd was the subject of an application for the termination of its 2016-2019 Agreement. The dispute arose from disagreements between the parties regarding the interpretation and application of the terms of the agreement, particularly in relation to the obligations of the parties and the performance of the contract. The case was heard by the Fair Work Commission (FWC), the body responsible for resolving workplace disputes in Australia.

The primary legal issue before the FWC was whether the contract had been breached by either party, and if so, whether the breach was sufficiently serious to warrant termination of the agreement. The applicant argued that the respondent had failed to fulfil certain obligations under the agreement, while the respondent claimed that the applicant had not upheld its own obligations. The FWC was required to consider the evidence presented by both parties, including any documentation, witness statements, and legal arguments, to determine whether a breach had occurred and whether the breach warranted termination.

After examining the evidence and arguments presented, the FWC determined that there had been breaches of the agreement by both parties, but that the breaches were not of a nature or severity that would justify termination of the agreement. The FWC found that while both parties had failed to fulfil certain obligations, the breaches were not significant enough to warrant the termination of the contract. Instead, the FWC ordered the parties to take specific steps to remedy the breaches and to work together to ensure that the agreement was fulfilled for the remainder of its term.

Sakata Rice Snacks Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established