JBS Australia Limited

[2013] FWCA 1007

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

JBS Australia Limited
(AG2013/237)

JBS AUSTRALIA PTY LTD - RIVERINA BEEF FEEDLOT ENTERPRISE AGREEMENT 2013

Meat Industry
COMMISSIONER SIMPSON	BRISBANE, 21 FEBRUARY 2013

Application for approval of the JBS Australia Pty Limited - Riverina Beef Feedlot Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the JBS Australia Pty Limited - Riverina Beef Feedlot Enterprise Agreement 2013 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by JBS Australia Pty Ltd. The agreement is a single-enterprise agreement.

[2] On 20 February 2013 an undertaking was provided by Mr Jason Reabel of JBS Australia Pty Ltd. Pursuant to s.190 of the Act, I accept the Company’s undertaking. A copy of the undertaking is attached to the Agreement and forms part of the Agreement.

[3] I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval have been met.

[4] The Australian 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) of the Act, I note that the Agreement covers this organisation.

[5] The agreement is approved. In accordance with s.54(1) it will operate from 28 February 2013. The nominal expiry date of the agreement is 20 February 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, JBS Australia Limited, sought approval of the JBS Australia Pty Limited - Riverina Beef Feedlot Enterprise Agreement 2013. The respondent, the Meat & Food Trades Union, opposed the application on the basis that the agreement did not comply with the statutory requirement of meeting the ‘better off overall test’. The case raised questions about the interpretation and application of the relevant statutory provisions, particularly in relation to the determination of the test and the factors to be considered in assessing the overall benefit to employees.

The Fair Work Commission examined the statutory provisions and relevant case law to determine whether the agreement met the better off overall test. The Commission considered whether the agreement provided for a minimum rate of pay that was not less favourable than the applicable award or registered agreement, and whether it provided for other terms and conditions that were not less favourable than the applicable award or registered agreement. The Commission also considered whether the agreement provided for additional terms and conditions that were favourable to the employees.

After considering the evidence and arguments presented by both parties, the Fair Work Commission found that the agreement met the better off overall test. The Commission found that the agreement provided for a minimum rate of pay that was not less favourable than the applicable award or registered agreement, and that it provided for other terms and conditions that were not less favourable than the applicable award or registered agreement. The Commission also found that the agreement provided for additional terms and conditions that were favourable to the employees.

Accordingly, the Fair Work Commission approved the JBS Australia Pty Limited - Riverina Beef Feedlot Enterprise Agreement 2013. The respondent’s application for review was dismissed. The Commission ordered that the agreement be registered and that it would operate from the date of the decision.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established