| [2024] FWCA 1175 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement
Kilcoy Pastoral Company Limited
(AG2024/659)
KILCOY PASTORAL COMPANY LIMITED ENGINEERING ENTERPRISE AGREEMENT 2024.
| Meat Industry | |
| COMMISSIONER ALLISON | MELBOURNE, 9 APRIL 2024 |
Application for approval of the Kilcoy Pastoral Company Limited Engineering Enterprise Agreement 2024
An application has been made for approval of an enterprise agreement known as the Kilcoy Pastoral Company Limited Engineering Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Kilcoy Pastoral Company Limited. The Agreement is a single enterprise agreement.
On 18 March 2024, my Chambers sent correspondence to the Applicant concerning issues relating to the Agreement. The Applicant provided its final responses on 28 March 2024. The issues and responses were as follows:
Clause 5.9 of the Agreement, relating to a cut off time for reporting claims of payment, may have permitted deductions of employee benefits contrary to the National Employment Standards. The Employer provided an undertaking to address this issue.
Clause 4.4 incorporates allowances into the cycle pay system set out in clause 4.3. Noting that casual employees were only paid marginally above Award, I sought submissions as to how casual employees could be considered better off under the Agreement in circumstances where they would receive allowances under the Award. The Employer submitted that the annualised salary arrangements set out in clause 4.3 do not apply to casual employees. I accept this submission and am satisfied that casual employees will be better off overall under the Agreement.
Clause 4.3, which sets out an annualised salary system, does not have reconciliation provisions in place to ensure that employees are better off overall. The Employer provided an undertaking that it will perform annual reconciliations of each annualised salary to ensure each employee is better off overall under the Agreement.
A copy of the undertakings are 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. The undertakings are taken to be a term of the agreement.
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.
The Agreement is approved and, in accordance with s.54, will operate from 16 April 2024. The nominal expiry date of the Agreement is 9 April 2028.
COMMISSIONER
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Annexure A
- AGLC
- Kilcoy Pastoral Company Limited [2024] FWCA 1175
- Case
- [2024] FWCA 1175
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the Commission was whether the proposed agreement complied with the provisions of the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement covered the necessary minimum terms, provided for fair remuneration and conditions, and adhered to the procedural requirements for approval. The Commission also considered the fairness of the proposed terms, including wages, working hours, and leave entitlements.
In its decision, the Commission found that the agreement substantially complied with the minimum standards set out in the Fair Work Act. The Commission noted that the agreement provided for fair and reasonable remuneration and conditions, and that it met the procedural requirements for approval. The Commission was satisfied that the proposed terms were fair and balanced, taking into account the specific circumstances of the company and its employees. As such, the Commission approved the Engineering Enterprise Agreement 2024, subject to the terms and conditions outlined in the decision.
The Fair Work Commission hereby approves the Engineering Enterprise Agreement 2024 entered into by the Kilcoy Pastoral Company Limited. The approval is subject to the terms and conditions specified in the decision, including the requirement for the company to provide written notice to employees of the approved agreement and to ensure compliance with the agreement.
Orders
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
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Ratio Decidendi
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