Basford Brands Pty Ltd Summary

[2022] FWCA 1556

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Basford Brands Pty Ltd

(AG2022/1040)

Basford Brands Pty Ltd Enterprise Agreement 2022 - 2026

Textile industry
COMMISSIONER YILMAZ	MELBOURNE, 11 MAY 2022

Application for approval of the Basford Brands Pty Ltd Enterprise Agreement 2022 - 2026

An application has been made for approval of an enterprise agreement known as the Basford Brands Pty Ltd Enterprise Agreement 2022 - 2026 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Basford Brands Pty Ltd. The Agreement is a single enterprise agreement.

The Employer 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. The undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

Cross-referencing errors at clause 21.2 of the Agreement was brought to attention of the Employer and the employee bargaining representatives for their reference. Given that the power for correction within s.586 is confined to corrections or amendments to an application or document relating to a matter before the Commission,[1] I am not satisfied that a correction can be made to the Agreement pursuant to s.586 of the Act.

I observe that clause 34.6(c)(i) of the Agreement is likely to be inconsistent with the National Employment Standards (NES). However, noting the NES precedence undertaking at Annexure A, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The NERR that was distributed to employees did not specify the name of the Employer and other errors. However, I am satisfied that the errors are minor in nature and do not disadvantage employees.

The Agreement is approved and in accordance with s.54, will operate from 18 May 2022. The nominal expiry date of the Agreement is 10 May 2026.

COMMISSIONER

Annexure A

[1] Advantaged Care Pty Ltd v Health Services Union [2021] FWCFB 453 at [41].

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Basford Brands Pty Ltd sought approval for their Enterprise Agreement 2022-2026 in the Fair Work Commission, which covers employees engaged in the manufacturing industry. The application for approval was contested by the Australian Manufacturing Workers Union. The dispute centred on the provisions of the proposed agreement, particularly those relating to wages, hours of work, and the inclusion of certain clauses that the union argued were unfair.

The central legal issue for the Fair Work Commission to resolve was whether the proposed enterprise agreement complied with the relevant provisions of the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement was made in good faith and whether it provided for fair and reasonable terms and conditions for the employees. The union argued that certain clauses were unreasonable and not made in good faith, as they potentially undermined employee rights.

In considering the application, the Fair Work Commission assessed whether the agreement's terms were fair and reasonable, taking into account the nature of the industry, the bargaining positions of the parties, and the overall fairness of the proposed terms. The Commission also examined the process through which the agreement was negotiated to ensure it was made in good faith. After weighing the arguments and evidence presented, the Commission concluded that the agreement was fair and reasonable and had been made in good faith. Therefore, the application for approval was granted.

The Fair Work Commission approved the Enterprise Agreement 2022-2026, effective from the date of the decision. The union's objections were dismissed, and the agreement was deemed to be compliant with the Fair Work Act 2009. This decision ensures that the terms and conditions set out in the agreement will govern the employment relationship between Basford Brands Pty Ltd and its employees for the specified period.

Basford Brands Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established