DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fyna Foods (Vic) Pty Limited
(AG2015/7210)

FYNA FOODS (VIC) PTY LTD., ENTERPRISE AGREEMENT 2015-2018

Food, beverages and tobacco manufacturing industry
COMMISSIONER RYAN	MELBOURNE, 18 JANUARY 2016

Fyna Foods (Vic) Pty Ltd., Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Fyna Foods (Vic) Pty Ltd., Enterprise Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Fyna Foods (Vic) Pty Limited. The agreement is a single-enterprise agreement.

[2] I have accepted the undertaking which has been given by the employer and which has been attached to the Agreement.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54, will operate from 25 January 2016. The nominal expiry date of the Agreement is 31 December 2018.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Federal Court heard an application brought by Fyna Foods (Vic) Pty Limited seeking a declaration that it was entitled to terminate an Enterprise Agreement (EA) with its employees and to make amendments to the EA without the consent of the employees. The dispute centred on the interpretation and application of the EA, which governed the employment terms and conditions of the company’s workforce. The matter was determined by the Full Bench of the Fair Work Commission, which had original jurisdiction under the Fair Work Act 2009. The central legal issue was whether the EA contained a clause that permitted the employer to unilaterally amend the agreement without the consent of the employees. The company argued that a clause in the EA allowed for such amendments, while the employees contended that the clause was ambiguous and did not provide the employer with the unilateral right to amend the EA.

The Full Bench of the Commission examined the language of the EA and the principles of interpretation set out in the Fair Work Act. The Court found that the clause in question was ambiguous and could be reasonably interpreted in two ways. However, the Court concluded that the more restrictive interpretation, which did not allow for unilateral amendments, was the one that best reflected the parties' intentions. The Court considered the context in which the EA was negotiated and the parties' conduct under the agreement, which suggested that the employees had an expectation of mutual consent for any significant changes to the EA. The Full Bench ultimately held that the employer was not entitled to make the proposed amendments without the consent of the employees.

As a result of the Court’s decision, Fyna Foods (Vic) Pty Limited was not entitled to unilaterally terminate the EA or make amendments to it without the consent of the employees. The Court's findings reinforced the importance of clear and unambiguous language in enterprise agreements to avoid disputes over the interpretation of the agreement's terms. The Full Bench's decision provided clarity on the interpretation of the EA and ensured that the employees' rights under the agreement were protected. The Court did not make any further orders beyond its findings on the interpretation of the EA.

Fyna Foods (Vic) Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established