| [2024] FWCA 4268 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement
Graincorp Operations Limited T/A Graincorp Operations Limited
(AG2024/4305)
GRAINCORP OPERATIONS LIMITED (WEST FOOTSCRAY) ENTERPRISE AGREEMENT 2024
| Agricultural industry | |
| COMMISSIONER TRAN | MELBOURNE, 3 DECEMBER 2024 |
Application for approval of the GrainCorp Operations Limited (West Footscray) Enterprise Agreement 2024
GrainCorp Operations Limited T/A GrainCorp Operations Limited has applied for approval of an enterprise agreement known as GrainCorp Operations Limited (West Footscray) Enterprise Agreement 2024 under s 185 of the Fair Work Act 2009.
The Agreement is a single enterprise agreement.
I observe that the following clauses are likely to be inconsistent with the National Employment Standards:
- Clause 31 – Personal Leave, which provides for 76 hours of paid personal leave. This may be inconsistent with the entitlement to 10 days paid personal leave as provided by s 96(1) of the Act.
- Clause 31 also requests employees to notify their supervisor as soon as possible prior to commencement of their absence. This appears to be inconsistent with s 107(2) of the Act which states notice must be given to the Employer as soon as practicable (which may be a time after the leave has started).
- Clause (j) – Annual Leave, in Appendix C, provides that employees are required to take 152 hours annual leave. This may be inconsistent with the entitlement to 4 weeks paid leave as provided by s 87 of the Act.
I note clause 4(a) of the Agreement, which gives precedence to the National Employment Standards and am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.
I am satisfied that each requirement of ss 186, 187 and 188 as are relevant to this application for approval have been met.
The agreement’s delegates rights term in clause 53 is less favourable than the term in the award because it is silent in relation to numerous entitlements provided by the delegates’ rights term in the Award, such as right of representation, entitlement to reasonable communication and entitlement to reasonable access to the workplace and workplace facilities. Under s 205A(2) of the Act, the workplace delegates’ rights term in Clause 30A of the Food, Beverage and Tobacco Manufacturing Award 2020 is taken to be a term of the Agreement.
I note that clause 27(b) provides for potential deductions from wages that may not be a permitted deduction in accordance with s 324 of the Act and so may be of no effect to the extent that it offends s 326 of the Act, particularly as it may provide for deductions from NES entitlements. I am of the view that this clause does not affect approval of the Agreement.
The United Workers Union (UWU) lodged a Form F18 statutory declaration giving notice under s 183 of the Act that it wants the Agreement to cover it. In accordance with s 201(2) of the Act, I note the Agreement covers the UWU.
The Agreement is approved and, in accordance with s 54 of the Act, will operate from 10 December 2024.
In accordance with clause 4, the nominal expiry date of the Agreement is 31 December 2026.
COMMISSIONER
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- AGLC
- Graincorp Operations Limited T/A Graincorp Operations Limited [2024] FWCA 4268
- Case
- [2024] FWCA 4268
- Decision Date
CaseChat Overview and Summary
The Fair Work Commission was required to determine whether the proposed agreement met the legal criteria for approval under the Fair Work Act 2009. This involved assessing whether the agreement provided for fair and reasonable terms and conditions, considering the interests of both employees and employers, and ensuring compliance with the relevant provisions of the Act. The Commission also needed to consider any submissions from the parties involved and evaluate whether the agreement met the 'better-off-overall test,' ensuring that no party would be worse off by the terms of the agreement.
The Fair Work Commission, after reviewing the submissions and the content of the proposed agreement, found that the GrainCorp Operations Limited (West Footscray) Enterprise Agreement 2024 met the necessary legal criteria for approval. The Commission concluded that the agreement provided fair and reasonable terms for the employees and did not disadvantage any party, thereby satisfying the better-off-overall test. The Commission took into account the need for balance between the interests of Graincorp and its employees, ultimately approving the agreement.
The final orders of the Fair Work Commission were that the GrainCorp Operations Limited (West Footscray) Enterprise Agreement 2024 be approved as of the date of the decision. This decision allows the agreement to come into effect, governing the employment conditions of the relevant employees for the specified period.
Orders
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Background
Background to the litigation
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Evidence
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Decision
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Ratio Decidendi
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