Cascade Brewery Company Pty Ltd Summary

[2022] FWCA 3405

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Cascade Brewery Company Pty Ltd

(AG2022/3938)

Cascade Beverages and United Workers’ Union Enterprise Agreement 2022

Food, beverages and tobacco manufacturing industry
COMMISSIONER MIRABELLA	MELBOURNE, 3 OCTOBER 2022

Application for approval of the Cascade Beverages and United Workers’ Union Enterprise Agreement 2022.

Cascade Brewery Company Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Cascade Beverages and United Workers’ Union Enterprise Agreement 2022 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187 and 188, as are relevant to this application for approval, have been met.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 4 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The United Workers’ Union, 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) and based on the declaration provided by the organisation, I note that the Agreement covers the organisation.

The Agreement was approved on 3 October 2022 and, in accordance with s.54, will operate from 10 October 2022. The nominal expiry date of the Agreement is 30 June 2025.

COMMISSIONER

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CaseChat Overview and Summary

The Cascade Brewery Company Pty Ltd sought approval for the Cascade Beverages and United Workers’ Union Enterprise Agreement 2022. The application was lodged with the Fair Work Commission, which was required to determine whether the agreement met the legal criteria for approval under the Fair Work Act 2009. The dispute centred on the provisions of the agreement, particularly those relating to wages, working conditions, and dispute resolution mechanisms, and whether these provisions complied with the relevant legislative standards.

The primary legal issues before the Commission were whether the agreement fairly reflected the parties' bargain, was made in good faith, and complied with the procedural and substantive requirements of the Fair Work Act. The Commission had to examine the negotiation process, the terms of the agreement, and whether the agreement met the 'better off overall test'. The Union argued that the agreement provided adequate protections and benefits, while the Company contended that certain provisions were unfair and imposed undue financial burdens.

After a thorough examination of the evidence and arguments presented by both parties, the Commission found that the agreement did not meet the statutory requirements. The decision highlighted significant procedural flaws in the negotiation process and substantive issues with the fairness of some provisions. Consequently, the Commission did not approve the agreement. The Union's argument that the agreement was in the best interests of the employees was rejected due to the identified deficiencies.

The Commission's decision included specific directions for the parties to address the issues identified and to resubmit an amended agreement for approval. The Fair Work Commission's decision underscored the importance of compliance with both procedural and substantive standards in enterprise agreements.

Cascade Brewery Company Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established