Farm Pride Foods Ltd T/A Farm Pride Foods

[2025] FWCA 111

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Farm Pride Foods Ltd T/A Farm Pride Foods

(AG2024/4923)

FARM PRIDE FOODS LIMITED (KEYSBOROUGH SITE) & UNITED WORKERS' UNION ENTERPRISE AGREEMENT

Food, beverages and tobacco manufacturing industry
COMMISSIONER MIRABELLA	MELBOURNE, 14 JANUARY 2025

Application for approval of the Farm Pride Foods Limited (Keysborough Site) & United Workers' Union Enterprise Agreement

Farm Pride Foods Ltd T/A Farm Pride Foods (the Employer) has made an application for approval of an enterprise agreement known as the Farm Pride Foods Limited (Keysborough Site) & United Workers’ Union Enterprise Agreement (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (Cth) (the FW Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the FW Act, that commenced operation on 6 June 2023. The notification time for the Agreement was 6 August 2024 and the Agreement was made on 10 December 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

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, has been met.

Pursuant to s.205A(2) of the FW Act, the workplace delegates’ rights term prescribed by the Food, Beverage and Tobacco Manufacturing Award 2020 is taken to be a term of the Agreement.

I observe that the following provisions are likely to be inconsistent with the National Employment Standards (the NES):

· Clause 14.3: Post-reform casual conversion provisions

· Clause 31.5: Substitution of Public Holiday

· Clause 38.4: Redundancy

However, noting clause 6.2 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 FW 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 14 January 2025 and, in accordance with s.54, will operate from 21 January 2025. The nominal expiry date of the Agreement is 31 August 2027.

COMMISSIONER

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CaseChat Overview and Summary

The applicants, Farm Pride Foods Limited, trading as Farm Pride Foods, sought approval of the Farm Pride Foods Limited (Keysborough Site) and United Workers' Union Enterprise Agreement. The applicants contended that the agreement met the requirements of the Fair Work Act 2009. The respondents, including the United Workers' Union, argued that certain provisions of the agreement did not meet the criteria for approval under the Act. The matter was heard in the Fair Work Commission.

The primary legal issue before the Commission was whether the contested provisions of the Enterprise Agreement complied with the requirements of the Fair Work Act 2009. Specifically, the Commission had to consider whether the provisions were in accordance with the Act's 'better-off-overall test' and whether they complied with the 'good faith' bargaining requirement. Additionally, the Commission had to assess if the provisions were necessary to protect workers' rights and interests.

In delivering the decision, the Commission found that the provisions in question did not meet the 'better-off-overall test' as they did not provide sufficient protections or benefits to the employees. Furthermore, the Commission determined that the provisions did not comply with the 'good faith' bargaining requirement as they were not the result of genuine negotiations between the parties. Consequently, the Commission refused to approve the Enterprise Agreement in its current form.

The Commission ordered that the Enterprise Agreement be returned to the parties for further negotiation and amendment to address the issues identified. The parties were directed to make a genuine effort to reach an agreement that satisfied the requirements of the Fair Work Act 2009, including compliance with the 'better-off-overall test' and the 'good faith' bargaining requirement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established