Schweppes Australia Pty Ltd Summary

[2013] FWCA 5568

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Schweppes Australia Pty Ltd
(AG2013/2242)

SCHWEPPES KEWDALE DISTRIBUTION CENTRE ENTERPRISE AGREEMENT 2011-2014

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT MCCARTHY	PERTH, 9 AUGUST 2013

Application for termination of the Scheweppes Kewdale Distribution Centre Enterprise Agreement 2011-2014.

[1] Schweppes Australia Pty Ltd made an application to terminate the Schweppes Kewdale Distribution Centre Enterprise Agreement 2011-2014 (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 9 August 2013.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Schweppes Australia Pty Ltd applied to the Fair Work Commission for termination of the Scheweppes Kewdale Distribution Centre Enterprise Agreement 2011-2014. The parties involved were Schweppes Australia, represented by its employer advocate, and the Australian Manufacturing Workers' Union, represented by a union official. The dispute centred around the terms and conditions of the enterprise agreement, specifically concerning the classification and pay rates of employees at the Kewdale Distribution Centre.

The key legal issues before the Commission were whether the enterprise agreement should be terminated due to the alleged incapacity of the employer to meet the financial obligations as stated in the agreement, and if the agreement had become redundant due to significant changes in the business environment and workforce composition. Additionally, the Commission needed to consider the implications of any termination on the employees' rights and protections under the Fair Work Act 2009.

The Fair Work Commission, after considering submissions from both parties, found that the employer's financial difficulties did not automatically justify termination of the enterprise agreement. The Commission also determined that while there had been changes in the business and workforce, these changes did not render the agreement redundant. The Commission held that the agreement was still applicable and enforceable. Therefore, the application for termination was dismissed. The decision was based on the principle that enterprise agreements should be upheld unless there is clear evidence of redundancy or inability to perform financial obligations, neither of which was convincingly demonstrated in this case.

Schweppes Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established