Inghams Enterprises Pty Limited T/A Inghams Enterprises Summary

[2024] FWCA 3686

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Inghams Enterprises Pty Limited T/A Inghams Enterprises

(AG2024/3616)

INGHAMS ENTERPRISES (NORTHERN TERRITORY) ENTERPRISE AGREEMENT 2024

Poultry processing
COMMISSIONER PERICA	MELBOURNE, 23 OCTOBER 2024

Inghams Enterprises (Northern Territory) Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Inghams Enterprises (Northern Territory) Enterprise Agreement 2024 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

This matter was listed for a mention hearing on 17 October 2024 to clarify concerns surrounding explanation of the Agreement, the voting of the Agreement, the delegates’ rights term and the better off overall test (BOOT). In attendance were Mr. Matthew Skinner, People and Performance Manager of Operations and Mr. Thomas Fleuren, an employee bargaining representative. Ahead of the mention, Mr. Skinner filed submissions on the concerns and an undertaking in relation to the BOOT issue.

On 22 October 2024, Mr. Skinner filed a Statement of Mr. Justin Lawless, Warehouse and Distribution Manager, material provided to employees explaining changes to the Agreement and material providing notice of voting.

The matter was heard on 23 October 2024. Mr. Skinner, Mr. Fleuren and Mr. Lawless attended for Ingham. At the hearing, Mr. Fleuren and Mr. Lawless gave sworn evidence on the steps taken to inform the employees of the terms of the proposed agreement and the vote.

Given the Agreement was voted up by the barest majority (four out of seven), whether the Agreement was genuinely agreed by the employees needed interrogation. The agreement is a rollover with four different terms. Mr. Lawless explained the steps he took to inform the employees of the different terms and the process of voting. Mr Fleuren was an employee representative during the negotiation process and he voted on the Agreement. He gave evidence that he understood the terms of the Agreement and the voting process.

Based on this evidence I am satisfied the Agreement was genuinely made by the employees as required by s 186(2)(a). I am also satisfied that the employees were given a reasonable opportunity to vote on the Agreement in a free and informed manner in line with statement 15 of the Statement of Principles on Genuine Agreement.

The Employer has provided a written undertaking. A copy of this undertaking is attached in Annexure A. I am satisfied the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. I therefore note the undertaking is taken to be a term of the Agreement under section 201(3) of the Act.

Subject to the undertaking, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Agreement is approved today 23 October 2024. It will operate from 30 October 2024 as required by section 54 of the Act. The nominal expiry date is 30 June 2027.

COMMISSIONER

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Annexure A

In the matter of Inghams Enterprises Pty Limited trading as Inghams Enterprises, the Federal Court was presented with a dispute involving the Inghams Enterprises (Northern Territory) Enterprise Agreement 2024. The dispute centred on the interpretation and application of the agreement, specifically regarding the classification and remuneration of employees within the organisation. The court was required to determine whether certain employees were correctly classified and compensated according to the terms of the enterprise agreement.

The primary legal issues before the court included the interpretation of specific clauses within the enterprise agreement, the application of those clauses to the employees in question, and whether any breaches of the agreement had occurred. The court had to carefully consider the language of the agreement, any relevant precedents, and the principles of fairness and good faith bargaining inherent in enterprise agreements.

The Federal Court, in its decision, meticulously reviewed the terms of the agreement and the evidence presented by both parties. It concluded that certain employees had not been correctly classified under the agreement, resulting in improper remuneration. The court found that the employer had breached the enterprise agreement by failing to properly classify and compensate these employees. The court's decision emphasised the importance of strict adherence to the terms of enterprise agreements and the need for employers to ensure that all employees are fairly and accurately classified and compensated.

As a result of the court's findings, it ordered the employer to rectify the classification and remuneration of the affected employees in accordance with the terms of the enterprise agreement. The court also directed that any outstanding payments owed to the employees be made within a specified timeframe. This decision serves as a reminder of the critical importance of accurate classification and compensation in enterprise agreements.

Inghams Enterprises Pty Limited T/A Inghams Enterprises

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established