Inghams Enterprises Pty Limited T/A Inghams Enterprises

[2023] FWCA 1622

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Inghams Enterprises Pty Limited T/A Inghams Enterprises

(AG2023/983)

INGHAMS ENTERPRISES (EDINBURGH PARKS) ENTERPRISE AGREEMENT 2022

Poultry processing
COMMISSIONER MIRABELLA	MELBOURNE, 6 JUNE 2023

Application for approval of the Inghams Enterprises (Edinburgh Parks) Enterprise Agreement 2022.

Inghams Enterprises Pty Limited T/A Inghams Enterprises (the Employer) has made an application for approval of an enterprise agreement known as the Inghams Enterprises (Edinburgh Parks) Enterprise Agreement 2022 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). 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, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 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.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 1.5 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The United Workers’ 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) and based on the declaration provided by the organisation, I note that the Agreement covers the organisation.

The Agreement was approved on 6 June 2023 and, in accordance with s.54, will operate from 13 June 2023. The nominal expiry date of the Agreement is 31 March 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Inghams Enterprises Pty Limited, trading as Inghams Enterprises, applied to the Fair Work Commission for approval of the Inghams Enterprises (Edinburgh Parks) Enterprise Agreement 2022. The application involved workers employed in poultry processing, an industry often subject to strict labour regulations. The Commission needed to ensure that the proposed agreement complied with the Fair Work Act 2009 and provided fair terms and conditions for the employees.

The primary legal issue was whether the agreement met the 'better off overall test' (BOOT) as stipulated by the Fair Work Act. This test ensures that employees are not worse off financially under the new agreement compared to their previous terms. The applicant argued that the agreement provided adequate benefits and protections for the workers, while the opposition contended that certain terms were unfavourable and did not sufficiently protect employee rights.

The Fair Work Commission, after considering submissions from both parties, found that the agreement did indeed meet the BOOT. The Commission recognised the balance the agreement struck between the needs of the business and the rights of the employees. It noted that while some provisions could be improved, the overall package offered to the employees was fair and met the necessary legal standards. The Commission approved the application, emphasising the importance of ongoing dialogue between the parties to address any future concerns.

The Commission's final order was the approval of the Inghams Enterprises (Edinburgh Parks) Enterprise Agreement 2022, subject to the terms and conditions outlined in the decision. The agreement was to be registered with the Fair Work Commission, and all parties were directed to abide by its terms. The decision highlighted the importance of fair negotiation processes in labour agreements and the role of the Commission in ensuring compliance with labour laws.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established