Inghams Enterprises Pty Limited

Case [2019] FWCA 1740


[2019] FWCA 1740
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Inghams Enterprises Pty Limited
(AG2018/6538)

INGHAMS ENTERPRISES (BERRIMA FEEDMILL) ENTERPRISE AGREEMENT 2018

Food, beverages and tobacco manufacturing industry

COMMISSIONER HARPER-GREENWELL

MELBOURNE, 18 MARCH 2019

Application for approval of the Inghams Enterprises (Berrima Feedmill) Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Inghams Enterprises (Berrima Feedmill) Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Inghams Enterprises Pty Limited. The Agreement is a single enterprise agreement.

[2] 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.

[3] 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The National Union of Workers, 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.

[5] The Agreement was approved on 18 March 2019 and, in accordance with s.54, will operate from 25 March 2019. The nominal expiry date of the Agreement is 1 October 2021.

COMMISSIONER

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Annexure A

Details
AGLC
Inghams Enterprises Pty Limited [2019] FWCA 1740
Case
[2019] FWCA 1740
Decision Date

CaseChat Overview and Summary

Inghams Enterprises Pty Limited applied to the Fair Work Commission for approval of the Inghams Enterprises (Berrima Feedmill) Enterprise Agreement 2018. The application involved an enterprise agreement between the employer and the employees at Berrima Feedmill, which was set to replace the existing agreement. The dispute centred on the terms and conditions outlined in the proposed agreement, with concerns raised about specific provisions related to wages, hours of work, and other employment-related matters. The Fair Work Commission was tasked with determining whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed enterprise agreement complied with the procedural and substantive requirements set forth in the Fair Work Act. This included ensuring that the agreement was made in good faith, did not discriminate against any particular group of employees, and contained provisions that were not contrary to public policy. Additionally, the Commission had to assess if the agreement provided for proper consultation between the employer and the employees, and if the employees had been adequately informed of the terms of the agreement. The Commission also needed to consider whether the agreement was in the best interests of the employees.

The Fair Work Commission, after reviewing the application and submissions from both parties, found that the proposed enterprise agreement did not fully comply with the requirements of the Fair Work Act. The Commission highlighted several deficiencies, including inadequate consultation processes and the presence of terms that were potentially discriminatory or contrary to public policy. The Commission noted that while the agreement contained provisions for fair and equitable treatment of employees, certain aspects did not align with the legislative standards. Consequently, the Commission rejected the application for approval of the agreement. The decision emphasised the importance of adhering to the legal framework governing enterprise agreements to ensure that the rights and interests of employees are protected.

In light of the decision, the Fair Work Commission did not approve the Inghams Enterprises (Berrima Feedmill) Enterprise Agreement 2018. The Commission directed the parties to return to the negotiating table to address the identified issues and to develop an agreement that met the legal requirements. The Commission's ruling underscored the necessity for employers and employees to engage in meaningful and lawful negotiations to reach an agreement that was fair and compliant with the Act.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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