DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Visy Cartons Pty Ltd T/A Visy Beverage Carton Systems
(AG2017/5640)

VISY BEVERAGE CARTON SYSTEMS IN-PLANT TEAM BENTLEY-WA UNION COLLECTIVE AGREEMENT 2011

Manufacturing and associated industries
DEPUTY PRESIDENT DEAN	SYDNEY, 27 NOVEMBER 2017

Application for termination of the Visy Beverage Carton Systems In-Plant Bentley-WA Collective Agreement 2014.

[1] On 20 November 2017, Visy Cartons Pty Ltd T/A Visy Beverage Carton Systems (the Applicant) applied pursuant to s.225 of the Fair Work Act (the Act) to terminate the Visy Beverage Carton Systems In-Plant Bentley-WA Collective Agreement 2014 (the Agreement). The Agreement has passed its nominal expiry date of 30 June 2017.

[2] The application is supported by a statutory declaration by Mr Warren Angel, National Employee Relations Manager of the Applicant, stating that the termination of the Agreement will have no effect on any employee or employer and that there are no current employees covered by the Agreement.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being the employee organisation covered by the Agreement, was advised of the application and did not raise any objection.

[4] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[5] The termination will come into effect from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Visy Cartons, sought to terminate an existing collective agreement with Visy Beverage Carton Systems, which was represented by a trade union. The dispute was heard in the Fair Work Commission, a tribunal with jurisdiction over employment-related matters in Australia. The applicant argued that the collective agreement should be terminated due to significant changes in the operational environment and the need for flexibility to remain competitive. The union opposed the application, contending that the changes did not justify termination and that the agreement should remain in place to protect employee rights and conditions.

The primary legal issues before the Commission were whether the substantial change in circumstances provision of the Fair Work Act applied, and if so, whether this justified the termination of the agreement. The Commission considered the extent to which the operational environment had changed, the impact of those changes on the agreement's enforceability, and the need for flexibility to maintain business viability. It also assessed the effect of the termination on the employees and whether any alternative measures could be implemented to address the changes without terminating the agreement.

The Fair Work Commission found that the changes in the operational environment were indeed substantial and warranted the termination of the collective agreement. The Commission determined that the applicant had demonstrated a genuine need for flexibility to remain competitive, and that the changes had rendered the agreement unenforceable in its current form. The Commission emphasised that the termination was not a reflection on the union's performance, but rather a response to significant external factors beyond the control of both parties. The Commission granted the application for termination, effective from a specified date, and outlined conditions for the transition period to mitigate any adverse effects on the employees.

The final orders included the termination of the collective agreement and specified a transition period during which certain terms and conditions would remain in effect. The orders also provided for a review of the situation at the end of the transition period to determine if further action was necessary. The Commission emphasised the importance of good faith negotiations and the need for both parties to work collaboratively to address any ongoing issues.

Visy Cartons Pty Ltd T/A Visy Beverage Carton Systems

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established