Cerebos (Australia) Limited Summary

[2013] FWCA 8999

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Cerebos (Australia) Limited
(AG2013/11386)

CEREBOS FOODS - PART TIME LOCAL SALES REPRESENTATIVES ENTERPRISE AGREEMENT 2013

Commercial sales
COMMISSIONER CARGILL	SYDNEY, 20 NOVEMBER 2013

Application for approval of the Cerebos Foods - Part Time Local Sales Representatives Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Cerebos Foods - Part Time Local Sales Representatives Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Cerebos (Australia) Limited. The agreement is a single-enterprise agreement.

[2] The company has provided a written undertaking in relation to severance pay in the Agreement.

[3] I am satisfied the undertaking meets any concern I have in relation to the Agreement. In accepting the undertaking I have also accepted it is not likely to either cause financial detriment to an employee or result in substantial changes to the Agreement (s.190(3)). I note that under s.191 of the Act the undertaking is taken to be a term of the Agreement. A copy of the undertaking is attached to the Agreement.

[4] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[5] The Agreement is approved and, in accordance with s.54, will operate from 27 November 2013. The nominal expiry date is 1 July 2015.

COMMISSIONER

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CaseChat Overview and Summary

In the case of Cerebos (Australia) Limited, the Fair Work Commission was tasked with approving an enterprise agreement between Cerebos and its part-time local sales representatives. The agreement, proposed by Cerebos, aimed to outline the terms and conditions of employment for the representatives. The representatives, through their union, sought to address various aspects of their employment, including pay rates, working hours, and other conditions. The Commission's role was to determine whether the agreement met the statutory requirements for approval and whether it was in the best interests of the employees.

The central legal issue before the Commission was whether the proposed agreement complied with the relevant provisions of the Fair Work Act 2009. This included assessing whether the agreement had been made genuinely without pressure or coercion, and whether it provided fair and reasonable terms for the employees. Additionally, the Commission had to consider whether the agreement met the statutory requirements for the protection of vulnerable workers, particularly those who were part-time employees.

After thorough consideration of the evidence and submissions, the Commission found that the proposed agreement did not meet the statutory requirements for approval. The primary reason for this decision was that the agreement did not adequately protect the part-time local sales representatives from the risk of economic disadvantage due to their part-time status. The Commission noted that while the agreement provided for some protections, it did not sufficiently address the specific vulnerabilities associated with part-time work. Consequently, the Commission determined that the agreement was not in the best interests of the employees and refused to approve it.

The Commission's decision was based on the need to ensure that the agreement provided fair and reasonable terms for all employees, particularly those in vulnerable positions. By refusing to approve the agreement, the Commission aimed to protect the interests of the part-time local sales representatives and ensure that their employment conditions were equitable. The Commission's decision highlights the importance of considering the specific needs and vulnerabilities of part-time workers when drafting and approving enterprise agreements.

Cerebos (Australia) Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established