Winc Australia Pty Ltd

Case [2022] FWCA 3476


[2022] FWCA 3476

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Winc Australia Pty Ltd

(AG2022/3677)

OfficeMax Australia Limited Tasmanian Employee Enterprise Agreement 2016-2018

Tasmania

COMMISSIONER CIRKOVIC

MELBOURNE, 7 OCTOBER 2022

Application for termination of the Officemax Australia Limited Tasmanian Employee Enterprise Agreement 2016-2018

  1. Winc Australia Pty Ltd has applied, pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the OfficeMax Australia Limited Tasmanian Employee Enterprise Agreement 2016-2018 (the Agreement). The Agreement has passed its nominal expiry date of 6 October 2018 and the Applicant is the employer covered by the Agreement.

  1. Section 225 of the Act provides as follows:

225      Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

(a)       one or more of the employers covered by the agreement;

(b)       an employee covered by the agreement;

(c)       an employee organisation covered by the agreement.”

  1. Section 226 of the Act provides as follows:

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.”

  1. The Applicant filed a Form F24C declaration by Mr Brock Woods, National Human Resources Manager, dated 1 September 2022. I note that no bargaining representatives were appointed during the approval process for the agreement subject to termination.

  1. On 5 September 2022, my Chambers issued Directions to the Applicant to serve a copy of the F24B Application, F24C Statutory Declaration, any other material provided to the Commission, and the Directions, on any employee covered by the Agreement. Employees were then given until 5:00PM on 19 September 2022 to respond to the application. The employees did not provide any submissions in relation to the termination.

  1. Materials provided to the Commission and the Form F24C declaration by the employer indicated that “termination of the agreement would have no negative effect on the employer or any of the employees covered by the agreement. Once termination of the agreement is approved, employees will be covered by the modern award, Storage Services and Wholesale Award 2020.

  1. Based on the material contained in the declaration of Mr Brock Woods filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement.

  1. The termination is effective from today.


COMMISSIONER

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Details
AGLC
Winc Australia Pty Ltd [2022] FWCA 3476
Case
[2022] FWCA 3476
Decision Date

CaseChat Overview and Summary

The applicant, Winc Australia Pty Ltd, sought the termination of the Officemax Australia Limited Tasmanian Employee Enterprise Agreement 2016-2018. The applicant argued that the agreement was no longer appropriate due to significant changes in the business environment and workforce. The matter was heard by the Fair Work Commission, an Australian federal statutory body responsible for the resolution of workplace disputes. The central legal issue was whether the changes in the business environment and workforce were sufficient to warrant the termination of the enterprise agreement.

The Fair Work Commission considered the criteria for terminating an enterprise agreement, including whether the agreement had become inappropriate due to substantial changes in the business environment or workforce. The Commission examined the evidence provided by both parties regarding the changes in the business environment and workforce, as well as the impact of these changes on the agreement. The Commission found that the applicant had demonstrated that the agreement had become inappropriate due to significant changes in the business environment and workforce. The Commission concluded that the changes were substantial enough to warrant the termination of the agreement.

The Fair Work Commission terminated the Officemax Australia Limited Tasmanian Employee Enterprise Agreement 2016-2018, effective from the date of the decision. The Commission also ordered that the termination would not affect the rights and obligations of employees under the agreement until a new agreement was made. This decision provides guidance on the criteria for terminating an enterprise agreement and the importance of considering changes in the business environment and workforce when assessing the appropriateness of an agreement.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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