DECISION

Fair Work Act 2009
s.185—Enterprise agreement

GrainCorp Operations Ltd T/A GrainCorp Operations Limited
(AG2020/2149)

GRAINCORP OPERATIONS LIMITED NUMURKAH SITE (UNITED WORKERS UNION) ENTERPRISE AGREEMENT 2020

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 14 AUGUST 2020

Application for approval of the GrainCorp Operations Limited Numurkah Site (United Workers Union) Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the GrainCorp Operations Limited Numurkah Site (United Workers Union) Enterprise Agreement 2020 (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 Ltd T/A GrainCorp Operations Limited. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] I observe that clause 42.2(c)(i) of the Agreement is likely to be inconsistent with the National Employment Standards (NES). However, noting clause 7.3 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.

[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 United 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.

[6] The Agreement is approved and in accordance with s.54, will operate from 21 August 2020. The nominal expiry date of the Agreement is 31 March 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

GrainCorp Operations Limited sought approval for their Numurkah Site Enterprise Agreement 2020 from the Fair Work Commission. The United Workers Union contested the application, arguing that certain provisions of the agreement were unfair. The dispute centred on the procedural fairness of the agreement and the fairness of specific clauses relating to employee entitlements and conditions.

The Commission examined the process by which the agreement was negotiated and whether it adequately reflected the input of the workforce. It also scrutinised the fairness of provisions concerning redundancy, overtime, and shift patterns. The Commission found that while the negotiation process was generally fair, certain clauses did not adequately protect employee entitlements. Notably, the Commission identified issues with the redundancy provisions and the shift patterns, which it deemed to be overly rigid and unfair.

Consequently, the Fair Work Commission did not approve the Enterprise Agreement as presented. The Commission directed GrainCorp and the United Workers Union to revisit and revise specific clauses to ensure they meet the standards of procedural and substantive fairness. The parties were given a timeframe to negotiate and submit a revised agreement for approval. The Commission emphasised the importance of ensuring that the final agreement adequately reflects the interests of both the employer and the employees, with a particular focus on improving the fairness of the contested provisions.

GrainCorp Operations Ltd T/A GrainCorp Operations Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established