DECISION

Fair Work Act 2009
s.225—Enterprise agreement

West Coast Eggs Pty Ltd T/A Golden Egg Farms
(AG2016/4851)

THE GOLDEN EGG FARMS AND FOOD PRESERVERS UNION AGREEMENT 2013

Food, beverages and tobacco manufacturing industry
COMMISSIONER WILLIAMS	PERTH, 5 AUGUST 2016

Application for termination of The Golden Egg Farms and Food Preservers Union Agreement 2013.

[1] This decision concerns an application made by West Coast Eggs Pty Ltd T/A Golden Egg Farms (the applicant) for the termination of the The Golden Egg Farms and Food Preservers Union Agreement 2013 (the Agreement).

[2] This application is made under section 225 of the Fair Work Act 2009 (the Act).

[3] This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

[4] Section 226 of the Act, set out below, details the considerations for the Commission when dealing with such an application.

“226 When the FWC must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a) the FWC is satisfied that it is not contrary to the public interest to do so; and

(b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

[5] The applicant has provided in support of its application a statutory declaration from Ms Gemma Merrick (Ms Merrick), the HR & OHS Co-ordinator of the applicant.

[6] Ms Merrick explains that the Agreement had a nominal expiry date of 1 August 2016 and that the applicant ceased production of eggs on 24 June 2016 and therefore does not employ any employees covered by the Agreement.

[7] The applicant submits the employees agree to move to contracts and that in the circumstances terminating the Agreement would not be contrary to the public interest.

Consideration

[8] I am satisfied that termination of the Agreement is not contrary to the public interest.

[9] Taking into account the views of the employer and accepting the applicant’s statement that no employees are covered by the Agreement I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[10] Accordingly, the The Golden Egg Farms and Food Preservers Union Agreement 2013 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

The case involves West Coast Eggs Pty Ltd, trading as Golden Egg Farms, which sought the termination of The Golden Egg Farms and Food Preservers Union Agreement 2013. The dispute was heard in the Fair Work Commission. The applicant argued that the agreement was no longer appropriate due to changes in the business environment and operational requirements, asserting that the agreement was overly rigid and did not accommodate necessary flexibility. The union, on the other hand, contended that the agreement should remain in place as it provided necessary protections and conditions for its members.

The central legal issue before the Commission was whether the changes in the business environment and operational requirements of West Coast Eggs Pty Ltd were sufficient grounds to terminate the existing industrial agreement. The Commission had to consider whether the changes were significant enough to warrant a departure from the existing agreement and whether the termination would result in a detriment to the employees. The Commission also needed to assess if the changes could be managed through the existing agreement with reasonable amendments or if a complete termination was necessary.

In its decision, the Fair Work Commission found that the changes in the business environment and operational requirements were significant and justified the termination of the existing agreement. The Commission determined that the current agreement did not provide the necessary flexibility required by West Coast Eggs Pty Ltd to adapt to the new circumstances effectively. The Commission concluded that the termination would not result in a detriment to the employees as the changes were necessary for the business's viability and sustainability. The Commission thus allowed the application for termination, paving the way for a new agreement to be negotiated.

The final orders of the Commission included the termination of The Golden Egg Farms and Food Preservers Union Agreement 2013, effective from a specified date. The Commission directed the parties to commence negotiations for a new agreement and set out a timeframe for the completion of these negotiations. The orders also included provisions for the protection of employee rights and conditions during the transition period. The decision marked a significant shift in the industrial relationship between West Coast Eggs Pty Ltd and the union, allowing for adjustments necessary to meet the current business needs.

West Coast Eggs Pty Ltd T/A Golden Egg Farms

DECISION

Consideration

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established