DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Specialty Packaging Group Pty Ltd
(AG2016/271)

CITY PAK SOMERTON ENTERPRISE AGREEMENT 2013

Graphic Arts
DEPUTY PRESIDENT HAMILTON	MELBOURNE, 19 FEBRUARY 2016

Application for termination of the City Park Somerton Enterprise Agreement 2013.

[1] This decision follows an application made on 11 February 2016 by Speciality Packaging Group Pty Ltd (the applicant) under s.225 of the Fair Work Act 2009 (the Act) to terminate the City Pak Somerton Enterprise Agreement 2013 (AE403470) (the Agreement).

[2] The Agreement has a nominal expiry date of 1 February 2016.

[3] The Act says :

225 Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

(a) one or more of the employers covered by the agreement;

(b) an employee covered by the agreement;

If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a) the FWC is satisfied that it is not contrary to the public interest to do so; and

(b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.

227 When termination comes into operation

If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) by email of 11 February 2016 confirmed it did not object to the application.

[5] The matter was listed for hearing based on the material before the Commission. No party submitted contrary to the submissions of the applicant.

[6] I am satisfied the relevant sections of the Act are met such that I must terminate the Agreement. The termination will take effect from 19 February 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Specialty Packaging Group Pty Ltd applied to Fair Work Australia for the termination of the City Park Somerton Enterprise Agreement 2013, which governed the employment of workers at its facilities. The company argued that the agreement was no longer appropriate due to changes in business operations and the need for more flexible working arrangements. Fair Work Australia was tasked with determining whether the application met the criteria for termination as set out in the Fair Work Act 2009.

The legal issues before the court involved assessing whether the changes in business operations and the need for flexibility constituted a substantial change in circumstances, warranting the termination of the enterprise agreement. The court had to consider the relevance and impact of these changes on the continued applicability of the agreement, as well as the potential impact on employees if the agreement were terminated. The company's arguments were that the changes were significant enough to warrant renegotiation of the agreement.

Fair Work Australia found that the changes in business operations and the need for more flexible working arrangements indeed constituted a substantial change in circumstances. The court determined that these changes had a significant impact on the continued applicability of the existing agreement, and that the need for flexibility was a valid reason for seeking its termination. The court concluded that the application met the criteria for termination and granted the relief sought by Specialty Packaging Group Pty Ltd. As a result, the City Park Somerton Enterprise Agreement 2013 was terminated, allowing for renegotiation of the terms to better suit the current business environment.

Specialty Packaging Group Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established