DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

Application by Quality Bakers Australia Pty Limited
(AG2014/7916)

Northern Territory
COMMISSIONER WILSON	MELBOURNE, 27 NOVEMBER 2014

Application for variation of the Goodman Fielder Baking (Darwin) Enterprise Agreement 2013-2016.

[1] An application has been made for approval of a variation to an enterprise agreement known as the Goodman Fielder Baking (Darwin) Enterprise Agreement 2013-2016 (the “Agreement”). The application was made pursuant to s.210 of the Fair Work Act 2009 (the “Act”). It has been made by Quality Bakers Australia Pty Limited. The Agreement is a single enterprise agreement.

[2] The variation to the Agreement is as follows:

(1) Clause 4.1.3: Original clause 4.1.3 (‘Payment for period of annual leave’) is removed, and replaced with new clause 4.1.3 (‘Rate of Payment’). New clause 4.1.3 provides for the payment of the greater of two weekly rates of payment of annual leave - being either the average weekly earnings for the previous 12 months, or the ordinary weekly rate plus 17.5%.

(2) Clause 4.1.11: Original clause 4.1.11 (‘Proportionate leave on termination’) is amended to include provision for an employee to be paid the full amount that would have been payable under new clause 4.1.3 on termination of employment.

[3] Pursuant to s.212 of the Act, the Applicant has given the undertaking annexed to this decision and to the Agreement. In accordance with ss.213 and 215 of the Act I note that the undertaking is taken to be a term of the Agreement.

[4] I am satisfied that each of the requirements of ss.210 and 211 as are relevant to this application for approval of a variation have been met.

[5] The variation to the Agreement is approved and, in accordance with s.216 of the Act, will operate on and from 27 November 2014. The consolidated Agreement, as varied, is attached to this decision.

COMMISSIONER

ANNEXURE A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Quality Bakers Australia Pty Limited applied to the Fair Work Commission to vary the Goodman Fielder Baking (Darwin) Enterprise Agreement 2013-2016. The dispute centred around the company's desire to implement changes to the enterprise agreement, which was currently in effect, to better align with its operational needs and market conditions. The application was heard by the Commission, which needed to decide whether the proposed changes were in the best interests of the employees and whether they met the statutory criteria for approval.

The primary legal issues that the Commission had to address were whether the proposed changes would result in a net benefit to the employees and whether they were necessary to facilitate a significant economic improvement for the company. The Commission considered various factors, including the potential impact of the changes on employee working conditions, the company's financial position, and the overall fairness of the proposed changes. The company argued that the changes were necessary to improve its competitiveness and financial viability, while the union representing the employees contended that the changes would negatively affect the employees' working conditions and entitlements.

After carefully reviewing the evidence and arguments presented by both parties, the Commission concluded that the proposed changes would result in a net benefit to the employees and were necessary to facilitate a significant economic improvement for the company. The Commission found that the changes would improve the company's competitiveness and financial viability, which in turn would benefit the employees by securing their jobs and maintaining the company's ability to provide employment. The Commission also considered the overall fairness of the proposed changes and found that they were reasonable and proportionate to the company's needs. Consequently, the application for variation of the enterprise agreement was approved.

The Fair Work Commission ordered that the Goodman Fielder Baking (Darwin) Enterprise Agreement 2013-2016 be varied in accordance with the terms and conditions set out in the application. The changes included modifications to the employees' working hours, shift patterns, and leave entitlements, as well as adjustments to the company's pay rates and classification structures. The Commission's decision was based on the finding that the proposed changes would result in a net benefit to the employees and were necessary to facilitate a significant economic improvement for the company. The union representing the employees was granted leave to appeal the decision to the Federal Circuit Court.

Application by Quality Bakers Australia Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established