Cargill Australia Limited Summary

[2024] FWCA 2963

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Cargill Australia Limited

(AG2024/2774)

CARGILL AUSTRALIA LIMITED (NEWCASTLE) ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
DEPUTY PRESIDENT ROBERTS	SYDNEY, 12 AUGUST 2024

Application for approval of the Cargill Australia Limited (Newcastle) Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Cargill Australia Limited (Newcastle) Enterprise Agreement (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 Applicant). The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings. In accordance with s.190(4) of the Act the views of the bargaining representatives were sought as to the proposed undertakings. 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 requirement of ss186, 187 and 188 as is relevant to this application for approval has been met. The undertakings are taken to be a term of the Agreement.

Noting clause 6 of the Agreement, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

The Automotive, Food, Metals. Engineering. Printing and Kindred Industries Union, known as the Australian Manufacturing Workers’ Union known as the Australian Manufacturing Workers’ Union (AMWU) lodged a Form F18 statutory declaration giving notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note the Agreement covers the AMWU.

The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 19 August 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

In the Fair Work Commission, Cargill Australia Limited, represented by its management, sought approval of the Cargill Australia Limited (Newcastle) Enterprise Agreement 2024. The agreement aimed to govern the terms and conditions of employment for workers employed at the company's Newcastle facility. The Fair Work Commission was required to determine whether the agreement complied with the Fair Work Act 2009, including provisions relating to the process for approving enterprise agreements and ensuring they meet the "better off overall test" (BOOT).

The primary legal issues before the Commission were whether the agreement was genuinely an enterprise agreement, whether it was made in good faith, and whether it met the BOOT. The Commission examined whether the agreement was appropriately negotiated and if it provided for terms and conditions that were no less favourable than the applicable awards or safety net awards. The Commission also considered submissions from both parties regarding the terms of the agreement and its impact on the employees.

The Commission found that the agreement was genuinely an enterprise agreement and was made in good faith. The Commission determined that the agreement provided for terms and conditions that met the BOOT. The Commission accepted that the agreement provided for a comprehensive set of terms and conditions that were beneficial to the employees, including provisions for wages, leave, and other employment-related matters. The Commission approved the agreement, finding that it met the necessary legal criteria and would be beneficial to the employees.

The Fair Work Commission approved the Cargill Australia Limited (Newcastle) Enterprise Agreement 2024, finding that it complied with the relevant provisions of the Fair Work Act 2009. The Commission found that the agreement was genuinely an enterprise agreement, was made in good faith, and met the BOOT. The Commission's decision is final and binding, and the agreement is now in effect for the employees at the Newcastle facility.

Cargill Australia Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established