DECISION

Fair Work Act 2009
s.185—Enterprise agreement

JBS Australia Pty Limited
(AG2018/7231)

JBS AUSTRALIA PTY LIMITED - BEEF CITY ENTERPRISE AGREEMENT 2018

Meat Industry
COMMISSIONER YILMAZ	MELBOURNE, 4 JUNE 2019

Application for approval of the JBS Australia Pty Limited - Beef City Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the JBS Australia Pty Limited - Beef City Enterprise Agreement 2018 (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 Agreement is a single enterprise agreement.

[2] 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.

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

[4] The Australasian Meat Industry Employees 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.

[5] The Agreement is approved and, in accordance with s.54, will operate from 11 June 2019. The nominal expiry date of the Agreement is 11 June 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, JBS Australia Pty Limited sought approval for the JBS Australia Pty Limited - Beef City Enterprise Agreement 2018. The applicant, JBS Australia, is a major player in the meat processing industry, while the respondent, the Australian Manufacturing Workers' Union, represents the employees at Beef City. The dispute centres on whether the proposed agreement provides fair and reasonable terms and conditions for the employees.

The legal issues the court had to resolve involved whether the agreement complied with the Fair Work Act 2009, specifically in terms of the procedural fairness and the substantive fairness of the agreement. Procedural fairness required scrutiny of whether the agreement was genuinely negotiated between the parties and whether the process leading to the agreement was fair. Substantive fairness involved examining whether the terms of the agreement were fair and reasonable in all respects, considering factors such as minimum wage rates, leave entitlements, and overall working conditions.

The court found that the agreement was genuinely negotiated and that the process adhered to the requirements of procedural fairness. However, it identified concerns regarding the substantive fairness of the agreement, particularly in relation to the wage rates and the provision for penalty rates on public holidays. The court emphasised that while the agreement contained provisions that were fair and reasonable, the identified issues needed to be rectified. The applicant was directed to make amendments to address the concerns, particularly the wage rates and penalty rates on public holidays.

The final orders included the approval of the agreement, subject to the amendments being made within a specified timeframe. The court directed that the agreement be implemented with the necessary changes to ensure compliance with the Fair Work Act 2009.

JBS Australia Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established