Inghams Enterprises Pty Limited Summary

[2014] FWCA 4814

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Inghams Enterprises Pty Limited
(AG2014/1348)

INGHAMS ENTERPRISES LISAROW MAINTENANCE ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 17 JULY 2014

Application for approval of the Inghams Enterprises Lisarow Maintenance Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Inghams Enterprises Lisarow Maintenance Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s185 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 Agreement was lodged within 14 days after it was made.

[3] I am satisfied that each of the requirements of ss186, 187 and 188 of the Act as are relevant to the application for approval have been met.

[4] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, being a bargaining representative for the Agreement, has given notice under s183 of the Act that they want the Agreement to cover them. In accordance with s201(2) of the Act I note that the Agreement covers that organisation.

[5] The Agreement is approved and, in accordance with s54 of the Act, will operate from 24 July 2014. The nominal expiry date of the Agreement is 28 February 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Inghams Enterprises Pty Limited applied to the Fair Work Commission for approval of the Inghams Enterprises Lisarow Maintenance Enterprise Agreement 2014. The applicant sought an enterprise agreement to cover employees working at its Lisarow site, and the respondents were several unions representing the employees. The unions opposed the application on the basis that the agreement did not provide for adequate minimum pay rates.

The primary legal issue before the Commission was whether the proposed agreement contained terms that met the requirements of the Fair Work Act 2009. Specifically, the Commission had to determine if the pay rates proposed in the agreement were consistent with the "better off overall test" and if they provided for minimum rates of pay that were no less favourable than the applicable awards or registered agreements. The unions argued that the proposed pay rates were insufficient and did not meet these standards.

The Commission examined the evidence provided by both parties and considered the relevant provisions of the Fair Work Act. It found that the proposed agreement did not meet the better off overall test as it did not provide for pay rates that were at least as good as those provided under the relevant awards. The Commission noted that the proposed pay rates were lower than the minimum rates set out in the Meat and Food Trades Award 2010. Consequently, the application for approval was rejected.

The Fair Work Commission concluded that the proposed enterprise agreement failed to meet the statutory requirements under the Fair Work Act and did not pass the better off overall test. The application for approval of the Inghams Enterprises Lisarow Maintenance Enterprise Agreement 2014 was dismissed.

Inghams Enterprises Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established