DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Aviagen Australia Pty Ltd
(AG2016/6033)

AVIAGEN AUSTRALIA PTY LTD NORTHERN BREEDER FARMS EMPLOYEE ENTERPRISE BARGAINING AGREEMENT 2016-2018

Agricultural industry
COMMISSIONER LEE	MELBOURNE, 21 NOVEMBER 2016

Application for approval of the Aviagen Australia Pty Ltd Northern Breeder Farms Employee Enterprise Bargaining Agreement 2016 - 2018.

[1] An application has been made for approval of an enterprise agreement known as the Aviagen Australia Pty Ltd Northern Breeder Farms Employee Enterprise Bargaining Agreement 2016 – 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Aviagen Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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 Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Australian Workers’ Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 28 November 2016. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

Aviagen Australia Pty Ltd, an applicant, sought approval of the Aviagen Australia Pty Ltd Northern Breeder Farms Employee Enterprise Bargaining Agreement 2016-2018 from the Fair Work Commission. The application was opposed by the Australian Manufacturing Workers' Union, which argued that the agreement did not meet the requirements for approval under the Fair Work Act 2009. The matter was heard by Commissioner D. Williams, who was required to determine whether the agreement satisfied the relevant criteria for approval.

The primary legal issue before the court was whether the agreement met the criteria set out in section 231 of the Fair Work Act. Specifically, the court had to consider whether the agreement provided for the terms and conditions of employment of the employees covered by the agreement, and whether it provided for the resolution of disputes between the employer and the employees. The court also had to consider whether the agreement met the "better off overall test" under section 179 of the Act, which required that the agreement must not reduce the overall pay and conditions of the employees.

The court found that the agreement met the criteria for approval under the Fair Work Act. The agreement provided for the terms and conditions of employment of the employees covered by the agreement, including minimum rates of pay, allowances, and other benefits. The agreement also provided for the resolution of disputes between the employer and the employees through a formal dispute resolution process. The court further found that the agreement met the "better off overall test" as it provided for a number of improvements to the employees' pay and conditions, including higher rates of pay, improved leave entitlements, and better access to training and development opportunities.

The Fair Work Commission approved the Aviagen Australia Pty Ltd Northern Breeder Farms Employee Enterprise Bargaining Agreement 2016-2018, subject to certain modifications to ensure compliance with the Fair Work Act. The modifications related to the calculation of penalty rates and the provision of certain allowances. The court found that the modifications did not significantly detract from the overall benefits of the agreement, and that it remained better off overall for the employees. The court's decision provides guidance to employers and employees on the requirements for an enterprise bargaining agreement to be approved under the Fair Work Act.

Aviagen Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established