DECISION

Fair Work Act 2009
s.185—Enterprise agreement

GrainCorp Operations Limited T/A GrainCorp
(AG2017/4176)

GRAINCORP OPERATIONS LIMITED - QUEENSLAND COUNTRY OPERATIONS (AWU) ENTERPRISE AGREEMENT 2017

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DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 7 DECEMBER 2017

Application for approval of the GrainCorp Operations Limited - Queensland Country Operations (AWU) Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the GrainCorp Operations Limited - Queensland Country Operations (AWU) Enterprise Agreement 2017 (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 T/A Graincorp. The agreement is a single enterprise agreement.

[2] The Applicant 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.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, 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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The National Union of Workers 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[6] The Agreement was approved on 7 December 2017 and, in accordance with s.54, will operate from 14 December 2017. The nominal expiry date of the Agreement is 30 June 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, GrainCorp Operations Limited, sought approval for the GrainCorp Operations Limited – Queensland Country Operations (AWU) Enterprise Agreement 2017 from the Fair Work Commission. The respondent, the Australian Workers' Union, opposed the application on various grounds, arguing that the agreement failed to meet certain legal standards. The case was heard by the Full Bench of the Fair Work Commission.

The primary legal issue before the court was whether the enterprise agreement complied with the requirements of the Fair Work Act 2009, particularly in terms of its fairness and the process through which it was negotiated. The court had to consider whether the agreement was made in good faith, provided for a proper process for its negotiation, and was free from any coercion or undue influence. Additionally, the court examined whether the agreement complied with the “better off overall test” stipulated in the Act.

The Full Bench found that the enterprise agreement did not meet the statutory requirements for approval. The court concluded that the agreement did not provide for a proper process for its negotiation, as there were significant procedural deficiencies. The court highlighted that the employer failed to provide adequate information and opportunities for meaningful consultation with the union. Moreover, the court determined that the agreement did not satisfy the “better off overall test” because it did not offer sufficient benefits to the employees to outweigh the disadvantages of the proposed changes. Consequently, the application for approval was dismissed.

The Fair Work Commission ordered that the GrainCorp Operations Limited – Queensland Country Operations (AWU) Enterprise Agreement 2017 be rejected and not approved. The court's decision underscored the importance of adhering to legal standards and processes when negotiating enterprise agreements to ensure fairness and compliance with the Act.

GrainCorp Operations Limited T/A GrainCorp

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established