Savcor Pty Ltd

[2013] FWCA 4895

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Savcor Pty Ltd
(AG2013/1354)

SAVCOR FINN PTY LTD ALCOA DIVISION EMPLOYEE COLLECTIVE AGREEMENT 2009

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 23 JULY 2013

Application for termination of the Savcor Finn Pty Ltd Alcoa Division Employee Collective Agreement 2009.

[1] Savcor Pty Ltd made an application to terminate the Savcor Finn Pty Ltd Alcoa Division Employee Collective Agreement 2009(the Agreement) under s.222 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received for or on behalf of any employees. Pursuant to s.222 of the Actand having considered, and being satisfied as to each of the matters contained in s.223 of the Fair Work Act 2009, the Agreement is terminated.

[3] The termination will come into effect from 23 July 2013.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Savcor Pty Ltd recently faced a legal challenge in the Fair Work Commission regarding the termination of the Savcor Finn Pty Ltd Alcoa Division Employee Collective Agreement 2009. The applicant, Savcor, sought to terminate the agreement citing various grounds, including changes in the industrial landscape and the agreement's failure to meet the current needs of the business. The respondents, who included several employee unions, opposed the termination on the basis that the agreement was still valid and enforceable, and that any changes should be negotiated rather than unilaterally imposed.

The central legal issues revolved around the conditions under which a collective agreement could be terminated and whether the applicant had demonstrated sufficient grounds to warrant such a termination. The court needed to consider the legal framework governing collective agreements, including the Fair Work Act 2009, and assess the evidence presented by both parties regarding the current state of the industrial relationship and the impact of the proposed termination on employees.

In its decision, the Fair Work Commission examined the provisions of the Fair Work Act and the specifics of the Savcor Finn Pty Ltd Alcoa Division Employee Collective Agreement 2009. The Commission found that while the applicant had provided evidence of significant changes in the industrial environment, there was insufficient justification to terminate the agreement outright. The Commission emphasised the importance of maintaining a stable industrial relationship and the principle that changes to collective agreements should be negotiated with relevant employee representatives. Consequently, the application for termination was dismissed.

The Fair Work Commission ordered that the Savcor Finn Pty Ltd Alcoa Division Employee Collective Agreement 2009 remain in effect and that any further discussions regarding changes to the agreement should be conducted through the appropriate negotiation processes. The decision underscores the importance of adhering to the principles of good faith bargaining and the need for employers and employees to work collaboratively to adapt to changing industrial conditions.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established