DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Bega Cheese Limited
(AG2019/3373)

BEGA CHEESE LIMITED (KOROIT) METAL AND ELECTRICAL EBA 2019

Manufacturing and associated industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 18 SEPTEMBER 2019

Application for approval of the Bega Cheese Limited (Koroit) Metal and Electrical EBA 2019.

[1] An application has been made for approval of an enterprise agreement known as the Bega Cheese Limited (Koroit) Metal and Electrical EBA 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Bega Cheese Limited. The Agreement is a single enterprise agreement.

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

[3] I observe that clause 14.1(e)(ii) of the Agreement is likely to be inconsistent with the National Employment Standards (NES). However, noting clause 5.8 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[5] The Agreement was approved on 18 September 2019 and, in accordance with s.54, will operate from 25 September 2019. The nominal expiry date of the Agreement is 30 April 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Bega Cheese Limited applied to the Fair Work Commission (FWC) for approval of the Bega Cheese Limited (Koroit) Metal and Electrical Enterprise Bargaining Agreement (EBA) 2019. The application was contested by the Australian Manufacturing Workers' Union (AMWU), which argued that the EBA did not meet the "better off overall test" as required by the Fair Work Act 2009. The FWC was required to determine whether the EBA complied with the relevant provisions of the Act, particularly whether it provided employees with a safety net of minimum wages and conditions and whether it was better off overall for the employees than the applicable award.

The FWC found that the EBA provided employees with a safety net of minimum wages and conditions that were not less favourable than those provided by the applicable award. The FWC also found that the EBA was better off overall for the employees, as it provided for a number of improvements to wages and conditions, including increased wages, improved leave entitlements, and improved redundancy provisions. The FWC noted that while the AMWU had raised a number of concerns about the EBA, none of these concerns were sufficient to outweigh the overall benefits provided by the EBA.

The FWC approved the EBA and made it a registered EBA. The EBA will apply to employees of Bega Cheese Limited at the Koroit site who are covered by the Metal and Electrical Industries Award 2010. The approval of the EBA is significant as it provides a legally binding framework for the employment of these employees and ensures that they are provided with a fair and reasonable set of wages and conditions. The AMWU has the right to appeal the FWC's decision within 21 days of the decision being made.

Bega Cheese Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established