Gunnedah Leather Processors
[2025] FWCA 3042
•9 SEPTEMBER 2025
| [2025] FWCA 3042 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185—Enterprise agreement
Gunnedah Leather Processors
(AG2025/2733)
GUNNEDAH LEATHER PROCESSORS PTY LTD (PRODUCTION) ENTERPRISE AGREEMENT 2025
| Manufacturing and associated industries | |
| DEPUTY PRESIDENT WRIGHT | SYDNEY, 9 SEPTEMBER 2025 |
Application for approval of the Gunnedah Leather Processors Pty Ltd (Production) Enterprise Agreement 2025
Introduction
Gunnedah Leather Processors (the Employer) has made an application for approval of an enterprise agreement known as the Gunnedah Leather Processors Pty Ltd (Production) Enterprise Agreement 2025 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.
The Agreement will apply to employees who are covered by the Manufacturing and Associated Industries and Occupations Award 2020 (the Award).
Rates of pay
The Employer advised that the Agreement contains the pay rates from the previous Agreement rather than the agreed pay rates. I advised the bargaining representatives that I proposed to amend the Agreement to include the correct rates of pay pursuant to s.586 of the Act. As I did not receive any objections from the bargaining representatives in relation to this matter, I consider it appropriate in the circumstances to allow an amendment of a document relating to a matter before the Commission and do so pursuant to s.586(a) of the Act.
Sufficient Interest and Sufficiently Representative
The F17 Declaration submitted by the Employer did not include information about whether employees have a sufficient interest in the terms of the agreement or were sufficiently representative of the employees it intends to cover. Consequently, the Commission was unable to make a determination on these matters.
The Employer subsequently provided submissions which included information relevant to the issue of sufficient interest and sufficiently representative. Based on those submissions I am satisfied that the employees requested to approve the agreement by voting for it have a sufficient interest in the terms of the agreement and are sufficiently representative.
Agreement Consideration and Explanation
In its application, the Employer did not describe the steps it took to provide employees with copies of the Agreement and incorporated material. The Employer provided submissions about the date and method that copies of the proposed Agreement were distributed to the employees. I am satisfied having regard to those submissions that the requirements of the paragraphs 4 to 7 of the Statement of Principles on Genuine Agreement have been met.
In their application, the Employer provided minimal detail on the steps they took to explain the terms of the Agreement and the effect of those terms to employees. The Employer provided submissions about how the terms and effects of the Agreement were explained to employees verbally and in writing. I am satisfied having regard to those submissions that the requirements of s.180(5) of the Act and paragraphs 8 to 14 of the Statement of Principles on Genuine Agreement have been met.
Model Flexibility Term
The Agreement does not contain a flexibility term that meets the requirements of s.203 of the Act. 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. A copy of the model flexibility term can be found in Schedule E of the Agreement.
Inconsistencies with the National Employment Standards (NES)
The Commission raised the following issues with the Employer in relation to the NES:
- Clause 37.1.2 of the Agreement provides that when taking personal/carer’s leave, the employee shall, where practicable, notify the employer as soon as possible on the first day of absence of their ability to attend for duty. This appears more restrictive than s.107(2) of the Act which provides notice must be given as soon as practicable, which may be a time after the leave has started.
Clause 39 of the Agreement does not provide paid compassionate leave where a child is stillborn, where the child would have been a member of the employee’s immediate family, or a member of the employee’s household, if the child had been born alive, or an employee or their spouse or de facto partner has a miscarriage, as provided by s.104 of the Act.
Clause 38 of the Agreement provides 5 days’ unpaid leave to deal with family and domestic violence, however s.106A of the Act provides 10 days’ paid family and domestic violence leave.
Clause 18.5 of the Agreement provides that the absence from work for a continuous period exceeding two working days without notifying the employer shall be evidence that the employee has abandoned their employment. This clause appears to provide that employees deemed to have abandoned their employment in accordance with this clause will not be afforded their minimum notice of termination entitlement pursuant to s.117(3) of the Act. Section 123 of the Act does not preclude an employee who has abandoned their employment from the entitlement to notice of termination provided by s.117 of the Act.
Clause 19.2 of the Agreement provides if an employee fails to give the required notice on termination of employment by the employee, the employer has the right to withhold monies due to the employee to a maximum amount equal to the amount the employee would have received, less any notice actually given. This clause does not appear to limit the source of monies which may deducted, which may permit the employer to withhold monies owing to employees under the NES.
Better off Overall Test (BOOT)
Clauses 33 and 34 of the Agreement provide overtime of 150% on Saturdays and 200% on Sundays but are silent regarding continuous shiftworker overtime. Clause 32.4 of the Award provides 200% for all overtime for continuous shiftworkers. As the rates of pay are only marginally above the Award, they do not appear high enough to compensate.
Section 190 Undertakings
The Employer provided written undertakings to address the above NES and BOOT issues. A copy of the undertakings is attached in Schedule D. 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.
Section 186, 187, 188 and 190
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.
Section 183 Bargaining Representatives
The Australasian Meat Industry Employees Union (AMIEU) 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 AMIEU.
Approval
The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 September 2025. The nominal expiry date of the Agreement is 16 September 2028.
DEPUTY PRESIDENT
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Annexure A
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