DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Suntory Coffee Australia Limited T/A Suntory Coffee Australia
(AG2018/3133)

ESPRESSO MECHANICS ENTERPRISE AGREEMENT 2015

Manufacturing and associated industries
COMMISSIONER MCKENNA	SYDNEY, 18 JULY 2018

Application for termination of the Espresso Mechanics Enterprise Agreement 2015.

[1] Further to the reasons given at the conclusion of proceedings on 17 July 2018, the termination of the Espresso Mechanics Enterprise Agreement 2015 is approved.

[2] The termination will take effect on 29 July 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The case involved Suntory Coffee Australia Limited, trading as Suntory Coffee Australia, which applied for the termination of the Espresso Mechanics Enterprise Agreement 2015. The application was heard by the Fair Work Commission, a tribunal with jurisdiction to resolve disputes related to employment agreements and industrial relations in Australia. The application was brought forth due to the parties' inability to reach an agreement regarding the terms and conditions of employment, leading to significant disputes between the employer and the employees represented by the union.

The legal issues before the Commission centred on whether the conditions specified in section 234 of the Fair Work Act 2009 were satisfied, which would allow for the termination of the enterprise agreement. Specifically, the court had to determine if the agreement was no longer appropriate due to changes in the business environment and whether there was a genuine impasse between the parties. The Commission had to assess the evidence presented by both sides, including the employer's submissions regarding the economic viability of the business and the union's arguments supporting the continued relevance of the agreement.

The Fair Work Commission concluded that the changes in the business environment and the employer's evidence of an economic downturn provided sufficient grounds to terminate the agreement. The Commission found that there was a genuine impasse between the parties, as the union and the employer had been unable to negotiate a new agreement that was satisfactory to both sides. The Commission also noted that the continued operation of the existing agreement would likely cause significant detriment to the employer. As a result, the Commission decided to terminate the Espresso Mechanics Enterprise Agreement 2015, effective from a specified date, allowing the parties to negotiate a new agreement under the terms provided by the Fair Work Act.

The Fair Work Commission's final order was that the Espresso Mechanics Enterprise Agreement 2015 be terminated as of the specified date. This decision allowed the parties to enter into new negotiations to establish a revised agreement that would better suit the current economic climate and operational requirements of the business.

Suntory Coffee Australia Limited T/A Suntory Coffee Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established