“Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU)

[2014] FWCA 3186

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

“Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU)
(AG2014/767)

BAXTERS FOODS AUSTRALIA (HUNTINGDALE) ENTERPRISE AGREEMENT 2013

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT KOVACIC	MELBOURNE, 14 MAY 2014

Application for approval of the Baxters Foods Australia (Huntingdale) Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Baxters Foods Australia (Huntingdale) Enterprise Agreement 2013 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU). The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] The consultation term of the Agreement does not meet the requirements of s.205(1) and s.205(1A) of the Act. In accordance with s.205(2) of the Act, the model consultation term, as set out in Schedule 2.3 of the Fair Work Regulations 2009, is taken to be a term of the Agreement, and replaces clause 19 of the Agreement. The model consultation term is attached to this decision as Attachment A.

[4] The AMWU, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act I note that the Agreement covers this organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 May 2014. The nominal expiry date of the Agreement is 30 June 2016.

DEPUTY PRESIDENT

Attachment A:

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves an application by the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, also known as the Australian Manufacturing Workers' Union (AMWU), for the approval of the Baxters Foods Australia (Huntingdale) Enterprise Agreement 2013. The matter was heard in the Fair Work Commission, an Australian industrial relations tribunal with jurisdiction over matters involving workplace relations and enterprise agreements. The primary dispute centred on whether the enterprise agreement should be approved under the Fair Work Act 2009, given the procedural and substantive compliance of the agreement with relevant industrial laws.

The court was tasked with determining whether the agreement had been made in accordance with the procedural requirements set out in the Fair Work Act, specifically whether it had been made freely and voluntarily without any form of coercion. Additionally, the court needed to assess whether the agreement met the 'better off overall test', ensuring that employees were not worse off than they would be under the applicable award or safety net. This involved examining the proposed terms and conditions, including wages, working hours, leave entitlements, and other employment conditions.

In its decision, the Fair Work Commission found that the agreement had been made in compliance with the procedural requirements of the Fair Work Act. The court concluded that the agreement had been negotiated in good faith and that the employees had not been coerced into accepting the terms. Regarding the substantive fairness of the agreement, the Commission found that the proposed terms and conditions were no worse than those provided under the relevant award and, in many cases, were better. Consequently, the court approved the Baxters Foods Australia (Huntingdale) Enterprise Agreement 2013.

The Fair Work Commission ordered that the Baxters Foods Australia (Huntingdale) Enterprise Agreement 2013 be approved and registered, effective from the date of the decision. The approval meant that the terms and conditions outlined in the agreement would apply to the employees covered by the agreement, replacing any conflicting provisions in the applicable award. The decision reinforced the importance of ensuring that enterprise agreements not only meet procedural requirements but also provide fair and reasonable terms for employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established