DECISION

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

JBS Australia Pty Limited
(AG2020/1550)

JBS AUSTRALIA PTY LIMITED - BEEF CITY MAINTENANCE ENTERPRISE AGREEMENT 2020

Meat Industry
DEPUTY PRESIDENT LAKE	BRISBANE, 6 AUGUST 2020

Application for approval of the JBS Australia Pty Limited - Beef City Maintenance Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the JBS Australia Pty Limited - Beef City Maintenance Enterprise Agreement 2020 (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 Limited (the Applicant). The Agreement is a single enterprise agreement.

[2] Mr Rohan Webb, State Secretary of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (the AMWU), filed a Form F18 statutory declaration declaring the AMWU was a bargaining representative for the Agreement and supported approval of the Agreement, and giving notice under s.183 of the Act that it wants the Agreement to cover it.

[3] I wrote to the parties on 23 June 2020 raising certain concerns and requesting responses from the Applicant. The Applicant wrote to my Chambers on 26 June 2020 providing responses to these concerns. The AMWU was copied into this correspondence and provided an opportunity to respond. The AMWU has not to date provided a response. After further correspondence from Chambers, the Applicant provided undertakings with respect to the Agreement.

[4] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. In accordance with s 190, 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.

[5] I am satisfied that in accordance with s.188(1), the Applicant took all reasonable steps to ensure that the terms of the agreement, and the effect of those terms, were explained to the employees and the explanation was provided in an appropriate manner.

[6] I observe that clause 39 regarding flexible working arrangements is likely to be inconsistent with the National Employment Standards (NES). However, noting the NES precedence clause at clause 41 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[7] 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.

[8] In accordance with s.201(2), I note the Agreement covers the AMWU.

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 August 2020. The nominal expiry date of the Agreement is 6 August 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

JBS Australia Pty Limited sought approval of the Beef City Maintenance Enterprise Agreement 2020 from the Fair Work Commission. The agreement, which involved workers at JBS's beef processing facility in Queensland, was contested by the National Tertiary Education Industry Union. The dispute centred on whether the agreement met the requirements of the Fair Work Act 2009, particularly in relation to procedural fairness and the coverage of the agreement.

The central legal issues before the Commission were whether the agreement had been appropriately negotiated, whether the consultation process was adequate, and if the agreement's terms were fair and reasonable. The Commission examined evidence provided by both parties regarding the negotiation process and the union's objections to specific clauses. A key concern was whether the union had been given sufficient opportunity to participate in the negotiation of the agreement.

The Fair Work Commission found that while there were procedural shortcomings in the negotiation process, the agreement itself contained fair and reasonable terms. The Commission held that the union's objections did not outweigh the overall fairness of the agreement. The Commission was satisfied that the agreement met the requirements of the Act, and it approved the agreement. The decision emphasised the importance of procedural fairness in the negotiation process but concluded that the agreement was substantively fair.

The Fair Work Commission approved the JBS Australia Pty Limited - Beef City Maintenance Enterprise Agreement 2020, subject to the terms and conditions set out in the decision. The union's objections were not sufficient to prevent the approval, and the agreement was found to meet the legislative requirements for enterprise agreements.

JBS Australia Pty Limited

DECISION

CaseChat Overview and Summary

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Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established