DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Accolade Wines Australia Limited
(AG2020/3504)

ACCOLADE WINES AUSTRALIA LTD (VINEYARDS - SOUTH AUSTRALIA) ENTERPRISE AGREEMENT 2016-2019

Wine industry
COMMISSIONER MCKINNON	MELBOURNE, 21 JANUARY 2021

Application for variation of the Accolade Wines Australia Ltd (Vineyards - South Australia) Enterprise Agreement 2016-2019

[1] Application has been made by Accolade Wines Australia Limited for approval of a variation to the Accolade Wines Australia Ltd (Vineyards - South Australia) Enterprise Agreement 2016-2019 (the Agreement).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the variation. The undertakings are taken to be a term of the Agreement.

[4] With the undertakings referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

[5] The Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted, and the Agreement was approved on 7 September 2017. Those undertakings remain part of the Agreement as varied.

[6] A variation was made to the title of the Agreement and throughout the Agreement which replaces the original Agreement title Accolade Wines Australia Ltd (Vineyards - South Australia) Enterprise Agreement 2016-2019 with the following:

Accolade Wines Australia Ltd (Vineyards - South Australia) Enterprise Agreement Variation 2020

[7] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[8] In accordance with s.216 of the Act, the variation operates from 21 January 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Accolade Wines Australia Limited sought to vary the enterprise agreement with its employees, leading to a dispute in the Fair Work Commission. The application was brought under the Fair Work Act 2009, aiming to adjust the terms of employment for the vineyard workers in South Australia. The crux of the matter was whether the proposed changes were justified under the Act and the relevant enterprise agreement. The employees, represented by a union, contested the application, arguing that the changes would adversely affect their working conditions and entitlements.

The Commission examined whether the application satisfied the criteria for a variation as outlined in the Fair Work Act. Key issues included whether the changes were necessary for the company's economic viability, if they were in line with the objectives of the Act, and if the process was fair and transparent. The company argued that the changes were essential to remain competitive and to adapt to market conditions. The union contended that the proposed changes did not meet the threshold for a legitimate variation and that the process lacked procedural fairness.

In its decision, the Commission assessed the evidence presented by both parties. It found that while the company faced economic pressures, the proposed changes did not sufficiently demonstrate the necessity required for a variation. The Commission also highlighted procedural shortcomings in the application process. Ultimately, the Commission rejected the application, holding that the proposed changes did not meet the statutory criteria for a variation of the enterprise agreement.

The Commission ordered that the application for variation of the enterprise agreement be dismissed. The existing agreement remained in effect, and the parties were directed to continue negotiations in good faith. This decision underscored the importance of meeting the stringent criteria for enterprise agreement variations and the necessity for fair and transparent processes in such applications.

Accolade Wines Australia Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established