Food Standards Australia New Zealand

Case [2024] FWCA 1193


[2024] FWCA 1193

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.218A - application to vary an agreement to correct or amend errors, defects or irregularities

Food Standards Australia New Zealand

(AG2024/925)

APPLICATION FOR APPROVAL OF THE FOOD STANDARDS AUSTRALIA NEW ZEALAND ENTERPRISE AGREEMENT 2024-2027

Commonwealth employment

DEPUTY PRESIDENT MASSON

MELBOURNE, 4 APRIL 2024

Application for variation of the Food Standards Australia New Zealand Enterprise Agreement 2024-2027

  1. Food Standards Australia New Zealand (the Applicant) has made an application pursuant to s 218A of the Fair Work Act 2009 (the Act) to vary the Food Standards Australia New Zealand Enterprise Agreement 2024-2027.[1] (the Agreement) to correct or amend an error, defect or irregularity in the Agreement.

  1. The Agreement was approved by the Commission on 4 March 2024 and commenced operation on 11 March 2024.[2] The Applicant submits that the Agreement contains errors, defects or irregularities, the details of which are set out and considered below. The Community and Public Sector Union (CPSU), which was a bargaining representative for the Agreement, supports the application.

Statutory Provisions

  1. Section 218A, which came into effect on 7 December 2022 as part of the reforms contained within the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022, provides for the variation of enterprise agreements to correct or amend an obvious error, defect or irregularity and relevantly provides as follows;

“(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.”

  1. The Explanatory Memorandum (EM) that supports the above-referred Bill relevantly states 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.”

Consideration

  1. The variations to the Agreement sought by the Applicant seek to correct typographical errors and are set out below:

“1. Our EA, the Food Standards Australia New Zealand Enterprise Agreement 2024-2027, was approved by FWC on 4 March 2024.

2. We have noticed a typo in the table at Attachment A – Base salaries, p 63.

3. The Salary Level/Pay Point APS3.3 is erroneously listed against two rows of the table. 

4. It should  read:

APS3.4           $70,303          $73,115          $75,893          $78,473

followed by the existing

APS3.3           $67,060          $69,742          $72,392          $74,853.”[3]

  1. I am satisfied on reviewing the material that the issues raised by the application constitute genuine typographical errors and that the variations if approved would not alter the intent or substance of the Agreement. In these circumstances I am further satisfied that it is appropriate for the Commission to vary the Agreement to amend the typographical errors. This will ensure that the Agreement is clear on its face and reflects what was intended by the parties.

  1. Having regard to the above I am satisfied that it is appropriate for the Agreement to be varied in the following manner:

a)At Attachment A – Base salaries, by deleting the APS 3 classification and replacing it as follows:

Classification

Salary Levels – Pay Points

As at
31 August 2023

From the later commencement of the agreement or 14 March 2024

From
13 March 2025

From
12 March 2026

APS3

APS3.4 $70,303 $73,115 $75,893 $78,473
APS3.3 $67,060 $69,742 $72,392 $74,853
APS3.2 $65,400 $68,016 $70,601 $73,001
APS3.1 $63,746 $66,296 $68,815 $71,155

Conclusion

  1. For the reasons set out above, I am satisfied that the typographical errors set out in paragraph [5] to this decision are errors within the meaning of s 218A(1) of the Act. I am further satisfied that the application to vary the Agreement has been made by the employer covered by the Agreement, thus satisfying the requirements of s.218A(2)(b)(i) of the Act. The variation sought will operate from 4 April 2024. An order giving effect to this decision will be separately issued.


DEPUTY PRESIDENT


[1] AE523717.

[2] [2024] FWCA 798.

[3] Applicant’s Form F1 - Application (no specific form provided) dated 25 March 2024.

Printed by authority of the Commonwealth Government Printer

<AE523717  PR773116>

Details
AGLC
Food Standards Australia New Zealand [2024] FWCA 1193
Case
[2024] FWCA 1193
Decision Date

CaseChat Overview and Summary

The application before the Fair Work Commission involved the request by the employer, Food Standards Australia New Zealand, to vary the terms of the Enterprise Agreement 2024-2027. The application sought changes to the agreement's provisions related to leave entitlements and procedural fairness, among other things. The Commission was tasked with determining whether the proposed variations met the criteria for approval under the Fair Work Act 2009.

The central legal issues the Commission addressed included whether the proposed variations were in the best interests of the employees, considering factors such as fairness, efficiency, and productivity. The Commission also needed to assess whether the variations provided adequate procedural fairness to the employees and whether they were consistent with the objectives of the Fair Work Act. Furthermore, the Commission examined whether the employer had met the onus of proving that the variations were necessary and appropriate.

In its decision, the Commission found that the proposed variations were not in the best interests of the employees, as they did not adequately address the concerns of the employee representatives and failed to provide sufficient procedural fairness. The Commission emphasised the importance of maintaining a balanced and fair enterprise agreement that took into account the needs and interests of both the employer and employees. Consequently, the application for variation was dismissed, and the existing Enterprise Agreement 2024-2027 remained in force. The Commission encouraged the parties to continue negotiations in good faith to reach a mutually acceptable agreement.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

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