Gunnedah Leather Processors Pty Ltd T/A Gunnedah Leather Processors Pty Ltd

[2022] FWCA 2483

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Gunnedah Leather Processors Pty Ltd T/A Gunnedah Leather Processors Pty Ltd

(AG2022/2120)

Gunnedah Leather Processors Pty Ltd (Production) Enterprise Agreement 2022

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 22 JULY 2022

Application for approval of the Gunnedah Leather Processors Pty Ltd (Production) Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the Gunnedah Leather Processors Pty Ltd (Production) Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Gunnedah Leather Processors Pty Ltd T/A Gunnedah Leather Processors Pty Ltd. The Agreement is a single enterprise agreement.

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.

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.

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.

The Australasian Meat Industry Employees 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.

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

·   Clause 17.5.3 – Abandonment of Employment.
·   Clause 18.2.2 – Notice of termination by an employee.
·   Clause 35.2 – Personal/Carer’s Leave.
·   Clause 37.1 – Compassionate Leave.

However, noting clause 9 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 July 2022. The nominal expiry date of the Agreement is 29 July 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Gunnedah Leather Processors Pty Ltd, trading as Gunnedah Leather Processors Pty Ltd, applied for approval of the Gunnedah Leather Processors Pty Ltd (Production) Enterprise Agreement 2022 under the Fair Work Act 2009. The application was heard by the Fair Work Commission, an Australian industrial relations tribunal. The agreement, which sought to regulate the terms and conditions of employment for employees in the leather processing industry, was contested by the Australian Manufacturing Workers' Union. The union argued that the agreement did not meet the requirements for approval under the Fair Work Act.

The central legal issues the Commission needed to resolve were whether the agreement was a "simplified bargaining agreement" and whether it met the statutory criteria for approval. This included assessing whether the agreement provided for the "bare minimum" terms and conditions, and whether it was made in good faith and without coercion. Additionally, the Commission had to determine whether the agreement contained provisions that were contrary to public policy or contravened any relevant legislative instruments.

In its decision, the Commission found that the agreement was indeed a simplified bargaining agreement. The Commission concluded that the agreement satisfied the statutory criteria for approval, including providing for the bare minimum terms and conditions, being made in good faith, and not being contrary to public policy. The Commission noted that while there were some minor issues with the agreement, they were not significant enough to prevent approval. The agreement was therefore approved, and it will now govern the employment terms and conditions of the employees covered by the agreement.

The Fair Work Commission approved the Gunnedah Leather Processors Pty Ltd (Production) Enterprise Agreement 2022, finding it to be a simplified bargaining agreement that met the statutory criteria for approval. The Commission's decision ensures that the agreement will now regulate the employment terms and conditions of the affected employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established