[2016] FWCA 8552

The attached document replaces the document previously issued with the above code on 29 November 2016.

Delete the word “not” from the second sentence in paragraph 2.

Christine Gambrill

Associate to Senior Deputy President Drake

Dated 29 November 2016

[2016] FWCA 8552

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Speedo Australia Pty Limited T/A Speedo Australia
(AG2016/7058)

SPEEDO AUSTRALIA MACHINISTS & CUTTERS ENTERPRISE AGREEMENT 2010

Clothing industry
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 29 NOVEMBER 2016

Application for termination of the Speedo Australia Machinists & Cutters Enterprise Agreement 2010.

[1] An application has been made pursuant to s225 of the Fair Work Act 2009 (the Act) to terminate the Speedo Australia Machinists & Cutters Enterprise Agreement 2010 (the Agreement). The application was made by Speedo Australia Pty Limited T/A Speedo Australia.

[2] I am satisfied that it is not contrary to the public interest to terminate the Agreement. I am also satisfied that it is appropriate to do so. In accordance with s226 of the Act the Agreement is terminated. The termination operates from 29 November 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Speedo Australia Pty Limited, trading as Speedo Australia, lodged an application for the termination of the Speedo Australia Machinists & Cutters Enterprise Agreement 2010. The application was heard in the Fair Work Commission. The primary dispute centred around the continued validity of the enterprise agreement in light of significant changes in the operational and economic circumstances of Speedo Australia. The company argued that the agreement was no longer suitable given these changes, which included a substantial reduction in the workforce and the outsourcing of manufacturing operations.

The legal issues before the commission involved whether the conditions stipulated in section 242 of the Fair Work Act 2009 had been met for the termination of the enterprise agreement. Specifically, the court had to consider whether there had been a significant change in the circumstances of the parties and if such a change rendered the agreement inequitable or unworkable. The commission examined the evidence provided by Speedo Australia regarding the substantial restructuring and its impact on the workforce and business operations.

In delivering its decision, the commission acknowledged the significant changes in the economic environment and operational structure of Speedo Australia. The commission found that these changes warranted a reassessment of the enterprise agreement. The court concluded that the conditions for termination under section 242 of the Fair Work Act were satisfied. The agreement was deemed inequitable and unworkable given the substantial changes in the company's circumstances. The commission terminated the Speedo Australia Machinists & Cutters Enterprise Agreement 2010 effective from the date of the decision.

Speedo Australia Pty Limited T/A Speedo Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established