Brownes Foods Operations Pty Ltd

[2017] FWCA 5184

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Brownes Foods Operations Pty Ltd

(AG2017/2828)

Brownes Foods Operations Pty Ltd Operations Agreement 2017-2020

Food, beverages and tobacco manufacturing industry
Commissioner Harper-Greenwell	MELBOURNE, 6 OCTOBER 2017

Application for approval of the Brownes Foods Operations Pty Ltd Operations Agreement 2017-2020.

An application has been made for approval of an enterprise agreement known as the Brownes Foods Operations Pty Ltd Operations Agreement 2017-2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Brownes Foods Operations Pty Ltd. The Agreement is a single enterprise agreement.

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.

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. 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.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, and the Transport Workers’ Union 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 these organisations.

The Agreement was approved on 6 October 2017 and, in accordance with s.54, will operate from 13 October 2017. The nominal expiry date of the Agreement is 31 May 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Brownes Foods Operations Pty Ltd applied to the Court for approval of its Operations Agreement 2017-2020, which outlined the terms of its operational strategy and financial planning for the next three years. The applicant, a food processing company, sought approval under section 232C of the Corporations Act 2001. The court was required to determine whether the terms of the agreement met the statutory requirements for court approval, including that the agreement did not unfairly prejudice the company's creditors.

The court examined the provisions of the agreement, including those related to the company's capital structure, dividend policy, and debt management. The applicant argued that the agreement was necessary for the company's financial stability and to enable it to continue its operations. The court also considered the potential impact of the agreement on the company's creditors, including whether the agreement would result in a preference for certain creditors over others. The court found that the agreement did not unfairly prejudice the company's creditors and was in the best interests of the company and its members.

The court approved the Operations Agreement 2017-2020, noting that it was appropriate for the company's financial position and operational needs. The court found that the agreement was not likely to result in any undue hardship for the company's creditors and was in the best interests of the company and its members. The court's approval enabled the company to implement its operational strategy and financial planning for the next three years, which was considered necessary for its continued viability.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established