Sigma Pharmaceuticals Pty Ltd and Transport Workers' Union of New South Wales and another matter [2009] NSWIRComm 1036

Sigma Pharmaceuticals Pty Ltd and Transport Workers' Union of New South Wales and another matter [2009] NSWIRComm 1036

Sigma did not obtain acceptable alternative work within cl 6(iii) because, although it endeavoured to facilitate the drivers' transition to Blue Circle, the Blue Circle engagements involved significant detriments including no guarantee of ongoing work, no continuity of service, loss of service-related entitlements, and remuneration arrangements substantially inferior overall to the Sigma contracts. The TWU did not establish grounds for a new contract determination increasing severance payments or changing the calculation period; the Determination was the applicable industry standard, the redundancies and run restructure were not shown to justify departure, and the evidence did not prove...

Jurisdiction
Australia
Judgment Date
10 July 2009
Procedural Posture
Applications Concerning Redundancy Payments for Contract Carriers Under the Transport Industry – Redundancy (state) Contract Determination and for a New Contract Determination / Decision After Hearing
Outcome
Both applications dismissed.
Legal Topics
['severance Pay for Contract Carriers' 'acceptable Alternative Work' 'application for Exemption or Reduction of Redundancy Payments' 'application for New Contract Determination' 'calculation of Weekly Pay' 'contract Carrier Status']
['industrial Relations' 'transport Industry' 'contract Determinations' 'redundancy'] ['severance Pay for Contract Carriers' 'acceptable Alternative Work' 'application for Exemption or Reduction of Redundancy Payments' 'application for New Contract Determination' 'calculation of Weekly Pay' 'contract Carrier Status']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Applications Concerning Redundancy Payments for Contract Carriers Under the Transport Industry – Redundancy (state) Contract Determination and for a New Contract Determination / Decision After Hearing

Legal Issues

  1. 1 ['Whether Sigma obtained acceptable alternative work with Blue Circle for the drivers within cl 6(iii) of the Transport Industry – Redundancy (State) Contract Determination so as to justify paying lesser or no severance pay.' 'Whether the TWU established grounds for a new contract determination requiring severance payments higher than those in the Determination.' 'Whether the TWU established grounds to calculate weekly pay by reference to 1 October 2006 to 1 October 2007 rather than the previous twelve months before redundancy.' 'Whether it was appropriate in these applications to determine which individual drivers were contract carriers within s 309 of the Industrial Relations Act 1996 or whether short-term drivers were made redundant.']

Ratio Decidendi

Sigma did not obtain acceptable alternative work within cl 6(iii) because, although it endeavoured to facilitate the drivers' transition to Blue Circle, the Blue Circle engagements involved significant detriments including no guarantee of ongoing work, no continuity of service, loss of service-related entitlements, and remuneration arrangements substantially inferior overall to the Sigma contracts. The TWU did not establish grounds for a new contract determination increasing severance payments or changing the calculation period; the Determination was the applicable industry standard, the redundancies and run restructure were not shown to justify departure, and the evidence did not prove...

Court Disposition

Both applications dismissed.

Orders

  • ['The application in IRC08/625 is dismissed.' 'The application in IRC08/884 is dismissed.']