KB Seafood Company Pty Ltd

Case [2022] FWCA 631


[2022] FWCA 631

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

KB Seafood Company Pty Ltd

(AG2022/19)

KB Seafood Company Pty Ltd Enterprise Agreement 2021

Seafood processing

DEPUTY PRESIDENT MANSINI

MELBOURNE, 25 FEBRUARY 2022

Application for approval of the KB Seafood Company Pty Ltd Enterprise Agreement 2021.

  1. KB Seafood Company Pty Ltd has applied for approval of a single enterprise agreement known as the KB Seafood Company Pty Ltd Enterprise Agreement 2021 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

  1. Since the application was made, the Commission raised concerns about whether the pre-approval requirements were met and whether the Agreement passes the “better off overall” test. Further information was provided in relation to these matters.

  1. The Notice of Employee Representational Rights (Notice) issued at the commencement of bargaining was not strictly compliant with the requirements of s.174 because it was not in the prescribed form (the coverage did not precisely align with the coverage in the Agreement). Further information was provided to support a finding that the relevant employees could understand the scope of the proposed enterprise agreement. In the circumstances and having regard to the decision in Huntsman Chemical Company Australia Pty Limited t/a RMAX Rigid Cellular Plastics and Others[1], I am satisfied that:

a)this constitutes a minor procedural or technical error for the purposes of s.188(2)(a); and

b)the employees to be covered by the Agreement were not likely to have been disadvantaged by this error.

  1. Some of the relevant employees were notified of the time and place of the vote during the access period, contrary to the requirement at s.180(3). Of 110 employees covered by the Agreement, 92 cast a vote. In the circumstances and having regard to the decision in Huntsman Chemical Company Australia Pty Limited t/a RMAX Rigid Cellular Plastics and Others[2], I am satisfied that:

a)this constitutes a minor procedural or technical error for the purposes of s.188(2)(a); and

b)the employees to be covered by the Agreement were not likely to have been disadvantaged by this error.

  1. Accordingly, notwithstanding the errors identified at paragraphs [3] and [4], I am satisfied that the Agreement has been genuinely agreed within the meaning of s.188(2) of the Act.

  1. Written undertakings were given in accordance with s.190 of the Act and are attached at Annexure A (Undertakings). 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. Pursuant to s.201(3) of the Act, the Undertakings are taken to be terms of the Agreement.

  1. Noting clause 1.5.3 of the Agreement, I am satisfied that the more beneficial entitlements of the National Employment Standards in the Act (NES) will prevail where there is an inconsistency between the Agreement and the NES.

  1. As there were no bargaining representatives appointed to represent the employees to be covered by the Agreement the Commission took steps to ensure the relevant employees were served with, and has received evidence that, the employees were informed of: the application; the Commission’s concerns; the Applicant’s responses to those concerns; and were invited to express their views (including about the Undertakings) and none opposed.

  1. On the basis of the material contained in the application, further information provided on request of the Commission and the Undertakings, 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.

  1. The Agreement was approved on 25 February 2022 and, notwithstanding clause 1.4.1 and in accordance with s.54, will operate from 4 March 2022. The nominal expiry date of the Agreement is 25 February 2026.

DEPUTY PRESIDENT

Annexure A
 


[1] [2019] FWCFB 318.

[2] [2019] FWCFB 318.

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Details
AGLC
KB Seafood Company Pty Ltd [2022] FWCA 631
Case
[2022] FWCA 631
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, KB Seafood Company Pty Ltd, an employer, applied for the approval of an enterprise agreement with its employees. The dispute arose when the company sought to finalise the terms and conditions of employment for its workforce, including aspects such as wages, working hours, leave entitlements, and other employment conditions. The Commission was tasked with determining whether the agreement met the necessary legal standards and whether it was fair and reasonable in all its terms.

The primary legal issues before the Commission were whether the enterprise agreement complied with the requirements set out in the Fair Work Act 2009. This included assessing if the agreement was made in good faith, whether it included the essential safety net terms, and if the agreement was fair and reasonable in all its terms. The Commission also needed to consider if the agreement adequately provided for the protection of employees' interests, including minimum wages and conditions, and whether it allowed for proper consultation and negotiation processes.

After examining the application and the agreement, the Fair Work Commission found that the KB Seafood Company Pty Ltd Enterprise Agreement 2021 complied with the statutory requirements. The Commission determined that the agreement was made in good faith, included all essential safety net terms, and was fair and reasonable in its provisions. The agreement was approved, reflecting the Commission's satisfaction that it provided adequate protection for employees and allowed for fair and effective workplace relations.

The final orders of the Commission were to approve the KB Seafood Company Pty Ltd Enterprise Agreement 2021, confirming its compliance with the relevant legal standards and recognising it as a binding agreement between the employer and the employees. This decision allows the parties to operate under the agreed terms, ensuring that the employment conditions are legally sound and adequately protect the rights of the workforce.

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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