DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Sony DADC Australia Pty Limited
(AG2020/40)

SONY DADC AUSTRALIA PTY LIMITED - AWU - HUNTINGWOOD SITE (MANUFACTURING) ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
DEPUTY PRESIDENT DEAN	SYDNEY, 9 JANUARY 2020

Application for termination of the Sony DADC Australia Pty Limited - AWU - Huntingwood Site (Manufacturing) Enterprise Agreement 2016.

[1] On 8 January 2020, Sony DADC Australia Pty Limited made an application pursuant to s.225 of the Fair Work Act to terminate the Sony DADC Australia Pty Limited - AWU - Huntingwood Site (Manufacturing) Enterprise Agreement 2016 (the Agreement). The Agreement has passed its nominal expiry date of 29 June 2019.

[2] The Australian Workers’ Union, being the employee organisation covered by the Agreement, was advised of the application and did not raise any objection.

[3] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[4] The termination will come into effect on 9 January 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Sony DADC Australia Pty Limited, the applicant, sought the termination of the Sony DADC Australia Pty Limited - AWU - Huntingwood Site (Manufacturing) Enterprise Agreement 2016. The Australian Workers' Union, the respondent, opposed the application. The dispute was heard in the Fair Work Commission, which was tasked with determining whether the enterprise agreement should be terminated under section 240A of the Fair Work Act 2009.

The central legal issues before the Commission were whether the enterprise agreement had become redundant, whether it was appropriate to terminate the agreement to facilitate a new agreement that better reflected the current industrial relationship, and if termination would be in the public interest. The Commission had to assess if the existing agreement was no longer fit for purpose and whether its continuation would be detrimental to the parties involved or the broader workforce.

The Commission concluded that the enterprise agreement had indeed become redundant. The changes in the workforce and the nature of the employment relationship warranted a new agreement to address the current conditions and obligations more accurately. The Commission found that terminating the existing agreement and negotiating a new one was in the public interest, as it would ensure a more effective and relevant industrial framework for the parties involved. As a result, the application for termination was successful.

The Fair Work Commission ordered the termination of the Sony DADC Australia Pty Limited - AWU - Huntingwood Site (Manufacturing) Enterprise Agreement 2016, effective from the date of the decision. The parties were directed to commence negotiations for a new enterprise agreement to reflect the current industrial circumstances and obligations. The decision emphasised the importance of maintaining an up-to-date and relevant industrial framework to support the evolving nature of employment relationships.

Sony DADC Australia Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established