DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Diamond Valley Pork Pty Ltd T/A Diamond Valley Pork
(AG2019/4387)

DIAMOND VALLEY PORK PTY LTD AND AUSTRALASIAN MEAT INDUSTRY EMPLOYEES’ UNION (VICTORIAN BRANCH) MEAT PROCESSING ENTERPRISE AGREEMENT 2019

Meat Industry
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 20 DECEMBER 2019

Application for approval of the Diamond Valley Pork Pty Ltd and Australasian Meat Industry Employees’ Union (Victorian Branch) Meat Processing Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Diamond Valley Pork Pty Ltd and Australasian Meat Industry Employees’ Union (Victorian Branch) Meat Processing 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 Diamond Valley Pork Pty Ltd T/A Diamond Valley Pork. The Agreement is a single enterprise agreement.

[2] The Employer 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. Pursuant to s.201(3), the undertakings are taken to be a term of 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.

[3] I note that clause 22 of the Agreement makes provision for the employer to recoup any overpayments/payments in excess of entitlements made during the life of this Agreement and has the right to deduct all outstanding debts owing to the company from any monies payable on cessation of employment. I note that clause 17.1 (g) of the Agreement states that in instances where outstanding equipment is not returned, the financial value will be deducted from the employee’s final pay. It note that clause 35 of the Agreement states that where an employee does not maintain clothing provided in accordance with company hygiene standards and be responsible for its care and safe keeping to a standard acceptable to the company, the company reserves the right to deduct monies equal to replacement value of the items. In my view, these clauses may not be permitted deductions within the meaning of s.324 of the Act, and pursuant to s.326 of the Act are likely to have no effect to the extent that they are not permitted deductions. However, notwithstanding my views on that, it is not a matter to which I am to have regard in terms of whether or not the Agreement should be approved and does not represent a barrier to the approval of the Agreement.

[4] The Australasian Meat Industry Employees 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) I note that the Agreement covers the organisation.

[5] The Agreement was approved on 20 December 2019 and, in accordance with s.54, will operate from 27 December 2019. The nominal expiry date of the Agreement is 8 June 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

The applicant, Diamond Valley Pork Pty Ltd trading as Diamond Valley Pork, sought approval of the 2019 enterprise agreement with the Australasian Meat Industry Employees’ Union (Victorian Branch). The Fair Work Commission was the court tasked with assessing the agreement. The key issue before the Commission was whether the agreement met the criteria for approval as set out in the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement provided for fair and reasonable terms and conditions for employees, including minimum rates of pay and conditions that were not less favourable than the applicable award or safety net award.

The Commission examined the submissions from both parties and considered the broader economic and industrial context. It found that the agreement was in line with the statutory requirements and provided for fair and reasonable terms and conditions. The Commission noted the agreement included provisions for minimum rates of pay that were not less favourable than the Meat Processing Award 2010 and provided for conditions that were fair and reasonable. The agreement also included provisions for enterprise bargaining, dispute resolution, and other standard matters. The Commission concluded that the agreement was appropriately negotiated and met the criteria for approval under the Act.

The Commission approved the 2019 enterprise agreement between Diamond Valley Pork Pty Ltd and the Australasian Meat Industry Employees’ Union (Victorian Branch). The approval was effective from the date of the decision. The agreement was to be registered with the Fair Work Ombudsman, and the parties were required to comply with the terms and conditions set out in the agreement. The decision was final and binding, and no further appeal was possible.

Diamond Valley Pork Pty Ltd T/A Diamond Valley Pork

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established