Schweppes Australia Pty Ltd T/A Asahi Beverages

Case [2017] FWCA 1194
[2017] FWCA 1194
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009
s.222—Enterprise agreement

Schweppes Australia Pty Ltd T/A Asahi Beverages
(AG2017/584)

SCHWEPPES AUSTRALIA PROSPECT DISTRIBUTION CENTRE (NSW) ENTERPRISE AGREEMENT (NSW) 2015 - 2018

Food, beverages and tobacco manufacturing industry

COMMISSIONER MCKENNA

SYDNEY, 1 MARCH 2017

Application for termination of the Schweppes Australia Prospect Distribution Centre (NSW) Enterprise Agreement (NSW) 2015 - 2018.

[1] Further to the reasons given at the conclusion of proceedings today, the termination of the Schweppes Australia Prospect Distribution Centre (NSW) Enterprise Agreement (NSW) 2015 – 2018 is approved.

[2] The termination operates from 10 March 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<Price code A, AE414401 PR590624>

Details
AGLC
Schweppes Australia Pty Ltd T/A Asahi Beverages [2017] FWCA 1194
Case
[2017] FWCA 1194
Decision Date

CaseChat Overview and Summary

Schweppes Australia Pty Ltd, trading as Asahi Beverages, applied to terminate the Schweppes Australia Prospect Distribution Centre (NSW) Enterprise Agreement 2015-2018. The applicants sought to terminate the agreement due to significant changes in business operations and financial difficulties. The dispute was heard by the Fair Work Commission. The legal issues before the Commission were whether the changes in business operations were significant enough to justify terminating the enterprise agreement and whether the financial difficulties of the company were a valid reason for termination.

The Fair Work Commission examined the evidence provided by the applicants regarding the substantial changes in the business operations and the financial situation of the company. The Commission considered whether these changes were unforeseeable and whether the company had taken reasonable steps to mitigate the impact of these changes on the employees. After careful consideration, the Commission concluded that the changes were indeed significant and unforeseeable, and the financial difficulties were a valid reason for seeking termination of the enterprise agreement. Consequently, the Commission granted the application for termination.

The final orders of the Commission included the termination of the Schweppes Australia Prospect Distribution Centre (NSW) Enterprise Agreement 2015-2018 with immediate effect. The Commission also specified the transitional arrangements for the affected employees, including the application of the applicable general awards to their employment conditions. This decision highlights the importance of businesses providing clear evidence of significant and unforeseeable changes when seeking to terminate an enterprise agreement due to operational and financial challenges.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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