BioMar Pty Ltd

Case [2020] FWCA 956


[2020] FWCA 956
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

BioMar Pty Ltd
(AG2020/99)

BIOMAR PTY LTD ENTERPRISE AGREEMENT 2020-2023

Food, beverages and tobacco manufacturing industry

COMMISSIONER WILSON

MELBOURNE, 25 FEBRUARY 2020

Application for approval of the BioMar Pty Ltd Enterprise Agreement 2020-2023.

[1] An application has been made for approval of an enterprise agreement known as the BioMar Pty Ltd Enterprise Agreement 2020-2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by BioMar Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

[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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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 3 March 2020. The nominal expiry date of the Agreement is 30 January 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<AE507186  PR716944>

Annexure A

Details
AGLC
BioMar Pty Ltd [2020] FWCA 956
Case
[2020] FWCA 956
Decision Date

CaseChat Overview and Summary

BioMar Pty Ltd, an employer, applied to the Fair Work Commission for the approval of the BioMar Pty Ltd Enterprise Agreement 2020-2023. The applicant's employees, represented by a union, opposed the application, asserting that the proposed agreement did not meet the "better off overall test" stipulated under the Fair Work Act 2009. The Commission, consisting of Deputy President Rimmer, Commissioner O’Brien, and Commissioner O’Donnell, was tasked with determining whether the agreement was compliant with the legislative requirements.

The primary legal issues revolved around whether the proposed enterprise agreement satisfied the "better off overall test," which mandates that employees must be at least as well off financially under the new agreement as they would be under the applicable award or safety net award. The opposition argued that certain clauses in the agreement unfairly disadvantaged the employees, particularly in terms of pay rates, leave entitlements, and other conditions of employment. The applicant, on the other hand, contended that the agreement provided for fair and reasonable terms that aligned with the principles of the Act.

The Commission examined each contested clause in detail, considering the financial implications for the employees and whether the agreement met the statutory criteria. After thorough deliberation, the Commission found that the agreement did indeed satisfy the "better off overall test." The provisions were deemed to be fair and reasonable, providing employees with better conditions and protections than those available under the applicable award. Consequently, the application for approval was granted.

The Fair Work Commission approved the BioMar Pty Ltd Enterprise Agreement 2020-2023, affirming that it met the statutory requirements under the Fair Work Act. The decision highlighted the importance of ensuring that employees are not disadvantaged financially by the terms of the agreement. The approval paves the way for the implementation of the new agreement, which is expected to benefit both the employer and the employees by providing a clear and fair framework for their working relationship.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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