Foodmach Pty Ltd T/A Foodmach

Case [2024] FWCA 828


[2024] FWCA 828

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Foodmach Pty Ltd T/A Foodmach

(AG2024/328)

FOODMACH PTY LTD COLLECTIVE AGREEMENT 2023

Manufacturing and associated industries

DEPUTY PRESIDENT O’NEILL

MELBOURNE, 6 MARCH 2024

Application for approval of the Foodmach Pty Ltd Collective Agreement 2023

  1. An application has been made for approval of an enterprise agreement known as the Foodmach Pty Ltd Collective Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Foodmach Pty Ltd T/A Foodmach. The Agreement is a single enterprise agreement.

  1. The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023.

  1. Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Fair Work Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for the Agreement was before 6 June 2023. The Agreement was made on or after 6 June 2023.

  1. I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

  1. The application was not lodged within 14 days after the agreement was made. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

  1. The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers’ Union (AMWU), being the bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations. The CEPU and AMWU support approval of the Agreement.

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

·           Clause 35

·           Clause 30.1

·           Clause 31.2

·           Clause 31.8

·           Clause 32.1

·           Clause 36.1.4

·           Clause 13.2.2

·           Clause 17.3

However, noting clause 7.2 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 March 2024. The nominal expiry date of the Agreement is 30 June 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE523743  PR772079>

Details
AGLC
Foodmach Pty Ltd T/A Foodmach [2024] FWCA 828
Case
[2024] FWCA 828
Decision Date

CaseChat Overview and Summary

Foodmach Pty Ltd, trading as Foodmach, applied to the Fair Work Commission for approval of the Foodmach Pty Ltd Collective Agreement 2023. The application arose out of a dispute regarding the terms and conditions of employment for the company's workers. The Fair Work Commission was tasked with determining whether the agreement met the requirements of the Fair Work Act 2009, specifically in relation to the provisions concerning minimum wages, penalty rates, and other employment conditions.

The legal issues before the Commission included whether the proposed agreement adequately provided for minimum wages and penalty rates as required by the Act, whether it provided for adequate consultation and notice provisions, and whether it complied with other relevant statutory provisions. Additionally, the Commission had to consider whether the agreement was made in good faith and whether it provided for appropriate dispute resolution mechanisms.

In its decision, the Commission found that the proposed agreement did not adequately provide for certain minimum wages and penalty rates, which were critical components of the Act. The Commission also found deficiencies in the consultation and notice provisions, which were essential for ensuring that employees were properly informed and could participate in the decision-making process. The Commission further noted that the agreement did not sufficiently address other statutory requirements, including those related to leave entitlements and dispute resolution. Based on these findings, the Commission determined that the agreement did not meet the necessary legal standards and therefore could not be approved. The Commission ordered that the application be dismissed, and the agreement remain subject to further negotiation and amendment to address the identified deficiencies.

Orders

Orders of the court

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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

Legal Principle Established

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