Stahmann Farms Enterprises Pty Ltd Summary

[2014] FWCA 5279

FAIR WORK COMMISSION

DECISION

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

Stahmann Farms Enterprises Pty Ltd
(AG2014/6883)

STAHMANN FARMS ENTERPRISE PROCESSING COLLECTIVE AGREEMENT 2009

Food, beverages and tobacco manufacturing industry
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 5 AUGUST 2014

Application for termination of the Stahmann Farms Enterprise Processing Collective Agreement 2009.

[1] On 22 July 2014 Stahmann Farms Enterprises Pty Ltd filed an application pursuant to s.225 of the Fair Work Act 2009 (“the Act”) to terminate the Stahmann Farms Enterprise Processing Collective Agreement 2009 (“the Agreement”).

[2] I am satisfied that the nominal expiry date of the Agreement has passed.

[3] In having regard to the requirements of s.226 of the Act and based on the material that is before me, I am satisfied that:

it is not contrary to the public interest to terminate the Agreement; and

the application is supported by the relevant employee organisation (the Australian Workers’ Union of Employees, Queensland).

[4] In accordance with s.227 of the Act, the termination will come into effect today.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Stahmann Farms Enterprises Pty Ltd, the employer, sought to terminate the Stahmann Farms Enterprise Processing Collective Agreement 2009, which governed the employment conditions of its workers. The Fair Work Commission (FWC) was the tribunal tasked with deciding whether the application to terminate the agreement should be upheld. The primary issue before the FWC was whether the employer could demonstrate that the conditions set out in the Fair Work Act 2009 for terminating a registered enterprise agreement had been met.

The FWC examined whether the employer could show that the agreement was no longer appropriate for the enterprise due to changed circumstances since its registration. The employer needed to provide evidence that the agreement was not being applied in good faith and that it was no longer fair and reasonable. The employer argued that changes in the industry and the business model necessitated a new agreement. The workers' representative, on the other hand, contended that the existing agreement remained suitable and should continue to apply.

The FWC assessed the evidence presented by both parties, focusing on whether the changes cited by the employer warranted a termination of the agreement. After considering the arguments and evidence, the FWC found that the employer had not sufficiently demonstrated that the agreement was no longer appropriate for the enterprise. The FWC concluded that the existing agreement remained fair and reasonable and should continue to apply. Therefore, the application for termination was dismissed.

The FWC ordered that the Stahmann Farms Enterprise Processing Collective Agreement 2009 would remain in effect, binding both the employer and the employees until a new agreement was negotiated and registered.

Stahmann Farms Enterprises Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established