Silk Contract Logistics Pty Ltd

[2024] FWCA 1047

[2024] FWCA 1047

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Silk Contract Logistics Pty Ltd

(AG2024/712)

SILK CONTRACT LOGISTICS PTY LTD & FUCHS WAREHOUSE ENTERPRISE AGREEMENT 2016

Storage services
COMMISSIONER CIRKOVIC	MELBOURNE, 25 MARCH 2024

Application for termination of the Silk Contract Logistics Pty Ltd & Fuchs Warehouse Enterprise Agreement 2016

1. Silk Contract Logistics Pty Ltd (Applicant) has applied under s 225 of the Fair Work Act 2009 (Act) to terminate the Silk Contract Logistics Pty Ltd & Fuchs Warehouse Enterprise Agreement 2016 (Agreement). The Agreement is expressed to cover the Applicant and its employees who are employed to perform duties consistent with the classification structure described in clause 2.2 and who are based at a Silk Contract Logistics Pty Ltd managed Fuchs Warehouse (Fuchs). The Agreement also covers the United Workers’ Union (UWU). The Agreement reached its nominal expiry date on 10 October 2019.

1. Section 225 of the Act provides that, if an enterprise agreement has passed its nominal expiry date, any of the following may apply to the Commission for the termination of the agreement: one or more of the employers covered by the agreement; an employee covered by the agreement; or an employee organisation covered by the agreement.

1. Section 226 of the Act states that, if an application for the termination of an enterprise agreement is made under s 225, the Commission must terminate the agreement if any of the requirements of ss 226(1)(a), (b) or (c) is met. Relevantly in the present case, the requirement of clause 226(1)(b) will be made out if the Commission is satisfied that the agreement does not, and is not likely to, cover any employees.

1. Section 226(1A) provides that the Commission must terminate an agreement under s 226(1) only if it is satisfied that it is appropriate in all the circumstances to do so.

1. Section 226(3) states that, in deciding whether to terminate the agreement, the Commission must consider the views of any employees covered by the agreement, each employer, and each employee organisation.

1. Section 226(4) requires the Commission to have regard to whether the application was made at or after the notification time for a proposed enterprise that will cover the same or substantially the same group of employees as the existing agreement; whether bargaining for the proposed enterprise agreement is occurring; and whether the termination of the existing agreement would adversely affect the bargaining position of the employees that will be covered by the proposed enterprise agreement.

1. Section 226(5) provides that in deciding whether to terminate the agreement, the Commission may also have regard to any other relevant matter.

1. The company’s F24C declaration, signed by Mr Robert Fitzpatrick, states that the company no longer provides services to Fuchs and that there are no employees covered by the Agreement.

1. The UWU has advised the Commission that it does not wish to be heard in relation to the application.

1. Based on the material before the Commission, including the declaration of Mr Fitzpatrick, I am satisfied that the Agreement does not, and is not likely to, cover any employees, and that the requirement of s 226(1)(b) is therefore met.

1. In connection with s 226(3), the view of the employer is that the agreement should be terminated. The view of the UWU is that it does not seek to be heard. There are no relevant employees.

1. None of the circumstances referred to in s 226(4) are present in this case. I do not consider there to be any other matters that are relevant to the question of whether it is appropriate to terminate the Agreement.

1. I am satisfied that it is appropriate in all the circumstances to terminate the Agreement, and I do so. The termination will operate from the date of this decision.

COMMISSIONER

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