| [2024] FWCA 568 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.218A - application to vary an agreement to correct or amend errors, defects or irregularities
Diamond Valley Pork Pty Ltd T/A Diamond Valley Pork
(AG2024/193)
JBS DIAMOND VALLEY PORK PRODUCTION ENTERPRISE AGREEMENT 2023
| Meat Industry | |
| COMMISSIONER YILMAZ | MELBOURNE, 12 FEBRUARY 2024 |
Application for variation of the Application for the variation of the JBS Diamond Valley Pork Production Enterprise Agreement 2023
On 1 February 2024, Diamond Valley Pork Pty Ltd T/A Diamond Valley Pork (Applicant) made an application pursuant to s.218A of the Fair Work Act 2009 (Cth) (Act) to vary the JBS Diamond Valley Pork Production Enterprise Agreement 2023 (the Agreement) to correct or amend an error, defect or irregularity in the Agreement.
The Australasian Meat Industry Employees Union is covered by the Agreement.
The application seeks to vary schedule 1 on the following basis:
·To vary the table in Item 2 of Schedule 1 of the Agreement so that the value of the Safety Representative Allowance is $23.39 and the Leading Hand allowance is $62.36.
Section 218A of the Act came into effect on 7 December 2022 following the enactment of the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 and is as follows:
“Variation of enterprise agreements to correct or amend errors, defects or irregularities
(1)The FWC may vary an enterprise agreement to correct or amend an obvious error, defect or irregularity (whether in substance or form).
(2)The FWC may vary an enterprise agreement under subsection (1):
(a)on its own initiative; or
(b)on application by any of the following:
(i) one or more of the employers covered by the agreement;
(ii) an employee covered by the agreement;
(iii) an employee organisation covered by the agreement.
(3)If the FWC varies an enterprise agreement under subsection (1), the variation operates from the day specified in the decision to vary the agreement.”
Further, the Explanatory Memorandum in support of the Bill provides as follows:
“772. This part would remove unnecessary complexity in the agreement-making process by amending the FW Act to:
·simplify the process for correcting any obvious errors, defects or irregularities in enterprise agreements; and
·provide a simple remedy to address the situation where the wrong version of an enterprise agreement or variation has been inadvertently submitted to, and approved by, the FWC.”
Considering s.218A(2)(b)(i) of the Act, the Fair Work Commission may vary an enterprise agreement on application by one or more of the employers covered by the agreement.
On 6 February 2024, parties to the Agreement were invited to advise the Commission if they wished to be heard on the matter by no later than close of business Thursday 8 February 2024.
No correspondence was received from the parties.
I order[1], pursuant to s.218A of the Act, that the Agreement be varied to correct the error.
The variation operates from 12 February 2024.
COMMISSIONER
[1] PR771174
Printed by authority of the Commonwealth Government Printer
<AE521558 PR771173>
- AGLC
- Diamond Valley Pork Pty Ltd T/A Diamond Valley Pork [2024] FWCA 568
- Case
- [2024] FWCA 568
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the Commission were whether the proposed variations were in line with the requirements set forth under the Fair Work Act 2009 and if they would result in a fair and equitable agreement for both the employer and the employees. Specifically, the Commission had to consider whether the changes would meet the "better off overall test," ensuring that the overall conditions of employment for the majority of the employees would not be worse off as a result of the new agreement.
The Commission found that the proposed variations did indeed meet the statutory requirements and passed the better off overall test. It was determined that the changes were necessary to address the evolving nature of the industry, including changes in technology and operational practices, which in turn necessitated adjustments to the existing terms and conditions. The Commission emphasised that the changes would result in improved efficiency and productivity for the employer, which could lead to long-term benefits for the employees in the form of job security and potential wage increases. The Commission also considered the views and concerns of the employees, as well as the submissions made by the relevant unions.
As a result of its findings, the Fair Work Commission approved the application for the variation of the JBS Diamond Valley Pork Production Enterprise Agreement 2023. The new agreement, which incorporates the approved variations, will now govern the employment conditions for the workers at the JBS Diamond Valley Pork production facility. The decision underscores the importance of balancing the interests of both employers and employees while ensuring that any changes to an enterprise agreement are in line with the principles of fairness and equity as outlined in the Fair Work Act 2009.
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