DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Cargill Australia Limited
(AG2019/5156)

CARGILL AUSTRALIA LIMITED, (NEWCASTLE) ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER JOHNS	SYDNEY, 17 JANUARY 2020

Application for approval of the Cargill Australia Limited, (Newcastle) Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Cargill Australia Limited, (Newcastle) Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Cargill Australia 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.

[3] I note that clause 36.1(d) of the Agreement appears to be inconsistent with the National Employment Standards (NES). Given the NES precedence clause at clause 6 of the Agreement, I am satisfied that the more beneficial provision to an employee shall take precedence.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 January 2020. The nominal expiry date of the Agreement is 6 November 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Cargill Australia Limited applied to the Fair Work Commission for approval of the Cargill Australia Limited (Newcastle) Enterprise Agreement 2019. The applicant sought approval under section 231 of the Fair Work Act 2009. The application was opposed by the Building, Construction, Forestry, Maritime, Mining and Energy Union, which represented the interests of some of the employees covered by the agreement. The central issue before the Commission was whether the agreement met the requirements for approval under the Fair Work Act, specifically whether it provided for fair and reasonable terms and conditions for the employees it covered.

The Commission examined various provisions of the agreement to determine if it provided for fair and reasonable terms and conditions. Key aspects included the agreement's provisions on wages, hours of work, and other employment conditions. The Commission also considered submissions from both parties and relevant legislative provisions. In reaching its decision, the Commission applied a two-step test to assess the fairness and reasonableness of the agreement. Firstly, it assessed whether the agreement was free from coercion, duress, and other inappropriate conduct. Secondly, it examined whether the agreement provided for fair and reasonable terms and conditions for the employees it covered.

After considering all the evidence and submissions, the Commission found that the agreement was free from any improper conduct and provided for fair and reasonable terms and conditions for the employees. The Commission noted that the agreement contained provisions that aligned with the principles of the Fair Work Act, including provisions on minimum wages, penalty rates, and other employment conditions. The Commission approved the agreement, finding it met the statutory requirements for approval.

The Fair Work Commission approved the Cargill Australia Limited (Newcastle) Enterprise Agreement 2019, confirming that it provided for fair and reasonable terms and conditions for the employees it covered. The Commission's decision was based on its assessment of the agreement's provisions and its alignment with the principles of the Fair Work Act.

Cargill Australia Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established