Hilton Foods Australia Pty Ltd Summary

[2023] FWCA 1982

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Hilton Foods Australia Pty Ltd

(AG2023/1944)

HILTON FOODS AUSTRALIA PTY LTD – HEATHWOOD, QUEENSLAND, AND THE AUSTRALASIAN MEAT INDUSTRY EMPLOYEES UNION QUEENSLAND AGREEMENT 2023

Meat Industry
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 30 JUNE 2023

Application for approval of the Hilton Foods Australia Pty Ltd – Heathwood, Queensland, and The Australasian Meat Industry Employees Union Queensland Agreement 2023

An application has been made for approval of an enterprise agreement known as the Hilton Foods Australia Pty Ltd – Heathwood, Queensland, and The Australasian Meat Industry Employees Union Queensland Agreement 2023 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023.

Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for the Agreement was before 6 June 2023.

Under transitional arrangements, amendments made by Part 16 of Schedule 1 to the Amending Act in relation to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. The better off overall test provisions in Part 2-4 of the Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the agreement was made before 6 June 2023. The Agreement was made on 3 June 2023.

The Employer has provided written undertakings (Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

Pursuant to subsection 190(3) of the Act, I accept the Undertakings. The Undertakings are taken to be a term of the Agreement.

Subject to the Undertakings, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

The Australasian Meat Industry Employees Union, being a bargaining representative for the Agreement, has given notice under section 183 of the Act that it wants the Agreement to cover it. In accordance with subsection 201(2) of the Act, I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with section 54 of the Act, will operate from 7 July 2023. The nominal expiry date of the Agreement is 31 May 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

In the recent decision of Hilton Foods Australia Pty Ltd, the Fair Work Commission was called upon to decide whether to approve a proposed enterprise agreement between the employer and the union. The agreement, titled the Hilton Foods Australia Pty Ltd – Heathwood, Queensland, and The Australasian Meat Industry Employees Union Queensland Agreement 2023, was the subject of an application by the employer. The union opposed the approval of the agreement, raising concerns over certain provisions that they believed did not meet the legal standards required for an enterprise agreement.

The primary legal issue before the Commission was whether the agreement complied with the relevant provisions of the Fair Work Act 2009. The union contended that several clauses in the agreement contravened the statutory requirements for enterprise agreements, specifically those related to minimum entitlements, notice periods, and redundancy provisions. The Commission was required to carefully examine each clause to determine if they met the necessary criteria for approval.

After a thorough examination of the agreement, the Commission found that several provisions did not comply with the statutory requirements. The union's concerns were substantiated in relation to certain clauses, which were found to be inconsistent with the minimum standards set out in the Fair Work Act. Consequently, the Commission decided not to approve the agreement in its current form. The Commission indicated that it was willing to facilitate further negotiations between the parties to address the identified issues and to produce a revised agreement that met the legal requirements.

No final orders were made in the decision as the agreement was not approved and the matter was remitted back to the parties for further negotiation and amendment. The Commission's decision underscored the importance of ensuring that enterprise agreements adhere to the statutory minimum standards and highlighted the need for careful drafting and review of such agreements.

Hilton Foods Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established