Graincorp Operations Limited Summary

[2024] FWCA 3944

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Graincorp Operations Limited

(AG2024/4068)

GRAINCORP OPERATIONS LTD (VICTORIAN OPERATIONS) ENTERPRISE AGREEMENT 2024

Grain handling industry
COMMISSIONER REDFORD	MELBOURNE, 13 NOVEMBER 2024

Application for approval of the GrainCorp Operations Ltd (Victorian Operations) Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the GrainCorp Operations Ltd (Victorian Operations) Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Graincorp Operations Limited. The Agreement is a single enterprise agreement.

Casual employees

On 12 November 2024 my chambers sent correspondence to the Employer outlining a query regarding casual employees. Taking into account the decision of the Full Bench in Appeal by Kmart Australia Limited & Ors[1], I sought clarification that each of the persons involved in the vote were eligible to be involved. The response provided by the Employer satisfies me that each of the persons balloted in the vote were eligible to participate in it, including each of the persons engaged as a casual employee, taking into account the principles in Kmart.

Undertakings and the NES.

The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

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

·   Clause 32 – Notice of Termination
·   Clause 34 – Public Holidays
·   Clause 35 – Annual Leave
·   Clause 36 – Personal Leave
·   Clause 37 – Compassionate Leave

However, noting clause 52 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.

Mandatory terms – workplace delegates rights term.

Taking into account undertaking [1] provided by the Employer, I am satisfied that the delegates rights term in the agreement is no less favourable than the delegates rights term in the relevant modern award.

Consideration and approval

Subject to the undertakings referred to above, 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.

The Australian Workers’ Union 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 November 2024.

COMMISSIONER

Annexure A

[1] [2019] FWCFB 7599

Printed by authority of the Commonwealth Government Printer

In the Fair Work Commission, Graincorp Operations Limited applied for approval of the GrainCorp Operations Ltd (Victorian Operations) Enterprise Agreement 2024. The agreement was negotiated between Graincorp, a major grain handling and storage company, and the relevant trade unions representing its employees. The dispute centred on whether the terms of the proposed agreement were in compliance with the Fair Work Act 2009 and whether they provided adequate protection and benefits to the employees.

The key legal issues before the Commission included whether the agreement fairly reflected the bargaining positions of both parties, whether the agreement met the requirements for good faith bargaining, and whether the terms of the agreement were consistent with the Fair Work Act's objectives. Specifically, the Commission needed to determine if the agreement adequately covered minimum wage rates, penalty rates, leave entitlements, and other employment conditions in line with the statutory framework.

In delivering its decision, the Commission considered the evidence presented by both Graincorp and the unions, including submissions on the economic context of the grain handling industry and the specific bargaining dynamics between the parties. The Commission found that the agreement was the product of genuine and good faith negotiations and that it provided fair and reasonable terms for the employees. The Commission concluded that the agreement met the statutory requirements for approval and would contribute positively to the industrial relations environment by providing a balanced outcome for both employers and employees. The Fair Work Commission approved the GrainCorp Operations Ltd (Victorian Operations) Enterprise Agreement 2024, effective from the date of the decision.

Graincorp Operations Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established