DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Bidfood WA Pty Ltd T/A Bidfood Fresh Perth
(AG2018/1869)

BIDFOOD FRESH PERTH - ENTERPRISE AGREEMENT 2018

Storage services
COMMISSIONER MCKINNON	MELBOURNE, 18 SEPTEMBER 2018

Application for approval of the Bidfood Fresh Perth - Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Bidfood Fresh Perth - Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Bidfood WA Pty Ltd T/A Bidfood Fresh Perth. The Agreement is a single enterprise agreement.

[2] Written undertakings have been given in accordance with s. 190. 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] The Agreement lodged contained an error at Clause A1.1. On 17 September 2018, the Applicant filed an amended version of the Agreement pursuant to s.586 of the Act. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[5] The Shop, Distributive and Allied Employees Association and National Union of Workers being bargaining representatives for the Agreement, have given notice under s.183 of the Act that it wants the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 September 2018. The nominal expiry date of the Agreement is 1 May 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Bidfood WA Pty Ltd T/A Bidfood Fresh Perth applied to the Fair Work Commission for the approval of the Bidfood Fresh Perth - Enterprise Agreement 2018. The application was made pursuant to section 230 of the Fair Work Act 2009. The application was opposed by the Shop, Distributive and Allied Employees’ Association (SDA) and the Liquor, Hospitality and Miscellaneous Workers' Union (LHMU), who claimed that the agreement did not meet the ‘better off overall test’ and had been negotiated in bad faith.

The legal issues for the Commission to decide were whether the agreement satisfied the requirements of section 231 of the Act, particularly whether it was in the interests of the employees, and whether it had been negotiated in good faith. The Commission noted that the agreement provided for a pay increase of 2.5 per cent per annum over three years, as well as other benefits such as additional leave entitlements and improvements to shift penalties. The Commission also considered the submissions of the parties and the evidence presented.

The Commission found that the agreement met the ‘better off overall test’ and had been negotiated in good faith. The Commission was satisfied that the agreement provided for a fair and reasonable outcome for the employees, taking into account the financial position of the employer and the nature of the industry. The Commission also found that the agreement had been negotiated in a manner that was consistent with the principles of good faith bargaining. The application was therefore approved.

The Fair Work Commission approved the Bidfood Fresh Perth - Enterprise Agreement 2018, effective from 1 April 2018. The agreement provides for a pay increase of 2.5 per cent per annum over three years, as well as other benefits such as additional leave entitlements and improvements to shift penalties. The approval is subject to the usual conditions and requirements of the Fair Work Act 2009.

Bidfood WA Pty Ltd T/A Bidfood Fresh Perth

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established