DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Independent Purchasing Company (Australasia) Ltd
(AG2015/1970)

IPCA ENTERPRISE AGREEMENT 2014

Fast food industry
COMMISSIONER GREGORY	MELBOURNE, 14 MAY 2015

Application for approval of the IPCA Enterprise Agreement 2014.

[1] An application has been made under s.185 of the Fair Work Act 2009 (the Act) for approval of an enterprise agreement known as the IPCA Enterprise Agreement 2014 (the Agreement). The Applicant is Independent Purchasing Company (Australasia) Ltd and the employers to be covered by the proposed Agreement are those named in a Single Interest Employer Authorisation made by the Commission on 18 December 2014 [PR559343].

[2] The application indicates that the proposed Agreement has identical or substantially identical terms to the IPCA Enterprise Agreement 2013 approved on 21 November 2013 by Commissioner Bull [AE405494].

[3] In reviewing the terms of the proposed Agreement the Commission sought clarification about its application to employees who only work on Sundays, or who work a significant proportion of their hours on Sunday. For example, a casual employee who only works 5 hours on Sunday under wage options A, B or D, or works 5 ordinary hours on Monday to Friday and 5 hours on Sunday under the same options.

[4] The Applicant’s representative provided indicative rosters in response, which have been in place in the businesses to be covered by the proposed Agreement during the months of April and May 2015. Those indicative rosters indicate there are no employees in the businesses covered by the application who work solely or predominately on Sunday only during each 4 week roster period. It was also indicated to the Commission that all employees work in accordance with these rotating rosters with the consequence that their hours of work are spread uniformly throughout the week over the course of each 4 week period.

[5] I am accordingly prepared to approve the Agreement based on the advice provided by the Applicant’s representative about the nature of the roster arrangements in place in the various businesses covered by the Agreement. However, it should also be emphasised that in coming to this decision it is based on the particular circumstances involved in this matter and it should not be considered to be a precedent for any other agreement approval application.

[6] I am also satisfied that each of the requirements in ss.186, 187 and 188 of the Act as relevant to this application for approval have been met.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 May 2015. The nominal expiry date of the Agreement is 13 May 2019.

COMMISSIONER

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CaseChat Overview and Summary

Independent Purchasing Company (Australasia) Ltd involved a dispute regarding the application for approval of the IPCA Enterprise Agreement 2014. The Fair Work Commission was the tribunal tasked with evaluating the application and determining whether the agreement should be certified as meeting the requirements of the Fair Work Act 2009. The application for approval came from Independent Purchasing Company (Australasia) Ltd, while the Australian Manufacturing Workers Union was the respondent in the proceedings.

The legal issues before the Commission centred on whether the agreement satisfied the criteria set out in the Fair Work Act. Specifically, the Commission had to determine whether the agreement was a "better off overall test" (BOOT) agreement, meaning that it provided employees with a net benefit compared to the applicable award or safety net. Additionally, the Commission had to consider whether the agreement complied with procedural requirements, such as the provision of a copy of the agreement to employees and the relevant union, and whether there had been proper consultation between the parties.

In delivering its decision, the Fair Work Commission examined the evidence and submissions presented by both parties. The Commission found that the agreement met the BOOT requirement and was in compliance with the procedural aspects of the Fair Work Act. The Commission was satisfied that the agreement provided a net benefit to employees and that the necessary consultation and communication processes had been followed. Consequently, the Commission approved the application for certification of the IPCA Enterprise Agreement 2014.

The Fair Work Commission's decision resulted in the certification of the IPCA Enterprise Agreement 2014, which became a legally binding enterprise agreement between Independent Purchasing Company (Australasia) Ltd and its employees. The agreement now governs the terms and conditions of employment for the relevant employees, and the Australian Manufacturing Workers Union has the right to represent employees in relation to the agreement.

Independent Purchasing Company (Australasia) Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established