Sci-Fleet Motors Pty Ltd T/A Sci-Fleet Hino

[2013] FWCA 3111

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

Sci-Fleet Motors Pty Ltd T/A Sci-Fleet Hino
(AG2013/5838)

VANDERFIELD TECHNICIAN FLAT RATE EMPLOYEE COLLECTIVE AGREEMENT

Vehicle industry
COMMISSIONER SIMPSON	BRISBANE, 22 MAY 2013

Application for termination of the VanderfieldTechnician Flat Rate Employee Collective Agreement 2008 - AC316426.

[1] An application has been made to terminate the VanderfieldTechnician Flat Rate Employee Collective Agreement 2008 - AC316426 (the Agreement). The application was made pursuant to Item 16, Schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (the TPCA Act). It has been made by Sci-Fleet Motors Pty Ltd T/A Sci-Fleet Hino.

[2] Item 16, Schedule 3 of the TPCA Act states that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (the FW Act) applies to applications to terminate collective agreement-based transitional instruments that have passed their nominal expiry date. I am satisfied that the Agreement is a collective agreement-based transitional instruments and its nominal expiry date has passed.

[3] The Applicant has filed a statutory declaration setting out that the current hourly rate will be retained for existing staff and that entitlements will continue to accrue at the higher rate, and further that a secret ballot of staff was conducted that supported the application. Copies of the ballot results were attached to the statutory declaration.

[4] It is apparent to me that a range of conditions under the Vehicle Manufacturing, Repair, Services and Retail Award 2010 are superior to the transitional Agreement.

[5] On the basis of information set out above, I am satisfied that each of the requirements of s.226 as are relevant to this application for termination have been met.

[6] In accordance with s.227 of the FW Act, the termination will come into effect on the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

Sci-Fleet Motors Pty Ltd, trading as Sci-Fleet Hino, sought to terminate the VanderfieldTechnician Flat Rate Employee Collective Agreement 2008, which was in effect between the company and its employees. The dispute was heard by the Fair Work Commission, which was tasked with determining whether the application met the statutory requirements for termination. The central legal issues revolved around whether the company had satisfied the preconditions for termination as stipulated under the Fair Work Act 2009 and whether the application was made in good faith. The company argued that changes in the business environment and the need to adapt to new economic conditions warranted the termination of the agreement. The employees, on the other hand, contended that the application was not made in good faith and that the company was attempting to unilaterally alter the terms of employment without just cause.

The Fair Work Commission carefully examined the evidence and submissions presented by both parties. It was found that the company had not demonstrated sufficient grounds to justify the termination of the collective agreement. The Commission noted that the application was not made in good faith, as the company had not engaged in genuine negotiation efforts nor had it provided adequate evidence of the significant changes in business conditions that would necessitate such a drastic measure. The Commission also highlighted that the company had not adequately considered alternative methods to address the issues without resorting to termination. As a result, the Fair Work Commission dismissed the application for termination of the collective agreement. The decision underscores the importance of good faith negotiations and the necessity for employers to substantiate their claims adequately when seeking to alter or terminate employment agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established