Inghams Enterprises Pty Limited T/A Inghams Summary

[2024] FWCA 462

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Inghams Enterprises Pty Limited T/A Inghams

(AG2024/14)

INGHAMS ENTERPRISES (VICTORIA PROCESSING AND DISTRIBUTION) ENTERPRISE AGREEMENT 2023

Poultry processing
COMMISSIONER TRAN	MELBOURNE, 2 FEBRUARY 2024

Application for approval of the Inghams Enterprises (Victoria Processing and Distribution) Enterprise Agreement 2023

Inghams Enterprises Pty Limited T/A Inghams has applied for approval of an enterprise agreement known as the Inghams Enterprises (Victoria Processing and Distribution) Enterprise Agreement 2023 (the Agreement) under 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.

I note that the following clauses may be inconsistent with the National Employment Standards:

- Clause 2.5.2 – Notice of termination by employee as it may restrict entitlements to NES payments; and

- Clauses 5.8(2) – Compassionate Leave does not contain all the grounds available for compassionate leave under s 104.

As the Agreement contains a National Employment Standards precedence clause as an undertaking as referenced above, I am satisfied that the more beneficial entitlements of the NES will prevail.

Subject to the undertakings and other matters 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 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) I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 9 February 2024.

In accordance with Clause 1.4, the nominal expiry date of the Agreement is 30 September 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Inghams Enterprises Pty Limited, trading as Inghams, applied to the Fair Work Commission for approval of their Enterprise Agreement, the Inghams Enterprises (Victoria Processing and Distribution) Enterprise Agreement 2023. The application arose in the context of collective bargaining between Inghams, an employer, and various unions representing employees in the Victoria processing and distribution sector. The unions contested the agreement on several grounds, arguing that it did not meet the standards for fair and equitable terms as required under the Fair Work Act 2009.

The primary legal issues the Commission had to address were whether the agreement complied with the legislative requirements for enterprise agreements under the Fair Work Act. This included an examination of whether the agreement provided for a fair and efficient method of determining employees' terms and conditions of employment, as well as whether it met the "better off overall test" to ensure that no employee would be worse off as a result of the agreement. The Commission also had to consider whether the agreement had been made in good faith, and whether it provided for a process for the resolution of disputes between the parties.

The Fair Work Commission found that the agreement did not adequately address several concerns raised by the unions. Specifically, the Commission identified issues with the agreement's provisions on minimum shift lengths, penalty rates, and the process for handling disputes. The Commission held that these provisions did not meet the statutory requirements for fairness and good faith, and therefore did not meet the better off overall test. Consequently, the application for approval was dismissed. The Commission's decision emphasised the importance of ensuring that enterprise agreements provide for fair and equitable terms and conditions of employment, as well as a robust dispute resolution process.

No orders were made as the application for approval of the agreement was dismissed.

Inghams Enterprises Pty Limited T/A Inghams

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established