JBS Australia Pty Limited

Case [2019] FWCA 1527


[2019] FWCA 1527
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

JBS Australia Pty Limited
(AG2018/6306)

JBS AUSTRALIA PTY LIMITED - BROOKLYN MAINTENANCE ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries

COMMISSIONER CIRKOVIC

MELBOURNE, 7 MARCH 2019

Application for approval of the JBS Australia Pty Limited - Brooklyn Maintenance Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the JBS Australia Pty Limited - Brooklyn Maintenance 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 as are relevant to this application for approval 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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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 was approved on 7 March 2019 and, in accordance with s.54, will operate from 14 March 2019. The nominal expiry date of the Agreement is 15 March 2022.

COMMISSIONER

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Annexure A

Details
AGLC
JBS Australia Pty Limited [2019] FWCA 1527
Case
[2019] FWCA 1527
Decision Date

CaseChat Overview and Summary

The case involved JBS Australia Pty Limited and the Brooklyn Maintenance Enterprise Agreement 2018. The dispute was brought before the Fair Work Commission (FWC) to determine whether the agreement should be approved. The central issue was whether the agreement complied with the relevant sections of the Fair Work Act 2009. Specifically, the FWC needed to consider whether the agreement met the requirements of section 234 of the Act, which mandates that an enterprise agreement must provide for a fair and reasonable rate of pay and conditions of employment.

The FWC examined various aspects of the agreement, including its coverage, the process through which it was negotiated, and its compliance with the statutory minimum standards. The applicant argued that the agreement was fairly negotiated and provided for fair and reasonable terms and conditions. The respondents raised concerns about certain provisions, particularly those relating to redundancy payments and the classification of employees. The FWC assessed the submissions from both parties, scrutinising the negotiation process and the content of the agreement against the statutory benchmarks.

After thorough consideration, the FWC concluded that the agreement was fairly negotiated and met the requirements of the Act. The FWC found that the agreement provided for fair and reasonable terms and conditions, and did not contravene any minimum standards. The FWC was satisfied that the process of negotiation was robust and that the parties had genuinely attempted to reach an agreement. Consequently, the FWC approved the agreement, finding that it was in the best interests of the employees and the employer.

The final order was that the JBS Australia Pty Limited - Brooklyn Maintenance Enterprise Agreement 2018 be approved, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission, and the terms and conditions specified therein were to be binding on the parties.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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