DECISION

Fair Work Act 2009
s.225—Enterprise agreement

VIP Steel Packaging Pty Ltd
(AG2020/853)

VIP PACKAGING - SUNSHINE ENTERPRISE AGREEMENT 2012

Manufacturing and associated industries
DEPUTY PRESIDENT MANSINI	MELBOURNE, 20 APRIL 2020

Application for termination of the VIP Packaging - Sunshine Enterprise Agreement 2012.

[1] VIP Steel Packaging Pty Ltd (the Applicant) has applied to terminate its VIP Packaging - Sunshine Enterprise Agreement 2012 (the Agreement) under the Fair Work Act 2009 (Cth) (the Act).

[2] The Agreement was approved by the Commission on 5 June 2012 and has a nominal expiry date of 31 December 2015.

[3] The evidence of the employer is that termination of the Agreement is necessary to simplify current conditions in the Agreement which is now outdated in terms of its business operations. The Commission has received evidence that the two employees covered by the Agreement have been offered and accepted that the terms of the Manufacturing and Associated Industries and Occupations Award 2010 will apply to their employment along with guaranteed higher rates of pay, going forward and in place of the Agreement.

[4] The Commission also received evidence that all affected employees have been served with this application and accompanying documents, notifications of Commission proceedings and invitations to provide their views (if any) to the Commission.

[5] In the circumstances, I have decided to determine the application on the papers.

[6] Having regard to the materials before the Commission and the matters I am required to take into account pursuant to s.226 of the Act:

(a) I am satisfied that termination of the Agreement is not contrary to the public interest; and
(b) I consider that it is appropriate to terminate the Agreement taking into account all the circumstances, including the views of the employer, the evidence of the employee’s acceptance of the employer’s proposal, that the employees elected not to provide any particular views to the Commission and did not oppose the application.

[7] Accordingly, pursuant to ss.226 and 227 of the Act, I terminate the Agreement with immediate effect. An order (PR718345) giving effect to this decision will issue accordingly.

DEPUTY PRESIDENT

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CaseChat Overview and Summary

VIP Steel Packaging Pty Ltd recently faced a court challenge concerning the termination of the VIP Packaging - Sunshine Enterprise Agreement 2012. The dispute arose between the company, the applicant, and the relevant union, the respondent. The matter was heard in the Fair Work Commission, which was tasked with determining whether the application for termination was valid and whether the conditions for such termination were met.

The central legal issues before the Commission were whether VIP Steel Packaging had demonstrated a genuine and significant economic change, as required by the Fair Work Act, and whether the agreement could be terminated in the absence of an alternative resolution mechanism. Additionally, the Commission needed to assess if the process followed by the company adhered to the procedural fairness required under the law.

The Fair Work Commission found that VIP Steel Packaging had not provided sufficient evidence to demonstrate a genuine and significant economic change. Furthermore, the Commission determined that the company had not made a genuine effort to negotiate an alternative resolution mechanism before applying for termination. Consequently, the application was dismissed, and the enterprise agreement remained in effect. This decision underscores the importance of both substantive and procedural compliance in such applications.

The Commission's ruling highlighted the necessity for employers to substantiate their claims with robust evidence and to engage in good faith negotiations to explore alternative resolutions. The outcome ensures that the rights of the employees, as protected under the enterprise agreement, remain in place until a more compelling case for termination is presented.

VIP Steel Packaging 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