DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Manildra Flour Mills (Manufacturing) Pty Ltd
(AG2018/312)

MANILDRA FLOUR MILLS ENTERPRISE AGREEMENT 2017 - 2019

Food, beverages and tobacco manufacturing industry
COMMISSIONER JOHNS	SYDNEY, 22 MAY 2018

Application for approval of the Manildra Flour Mills Enterprise Agreement 2017 - 2019.

[1] An application has been made for approval of an enterprise agreement known as the Manildra Flour Mills Enterprise Agreement 2017 - 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Manildra Flour Mills (Manufacturing) Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[4] The National Union of Workers 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 of the Act, will operate from 29 May 2018. The nominal expiry date of the Agreement is 31 January 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Manildra Flour Mills (Manufacturing) Pty Ltd applied for approval of the Manildra Flour Mills Enterprise Agreement 2017-2019. The applicants sought approval under section 232 of the Fair Work Act 2009. The dispute centred around the terms and conditions of employment for the workers within the specified enterprise agreement. The legal issues at hand were whether the agreement complied with the requirements of the Fair Work Act, particularly in relation to the provisions that were deemed to be "ineffective" and the implications of the "better off overall test".

The Commission began by examining the "ineffectiveness" of certain provisions in the agreement. It found that certain provisions did not meet the criteria for effectiveness as they were vague and did not clearly define the terms and conditions of employment. The Commission considered whether these provisions could be severed from the agreement to allow for the remaining provisions to be approved. After careful analysis, the Commission determined that the severance of the ineffective provisions did not undermine the overall purpose and effect of the agreement. The Commission then moved to assess the "better off overall test" to ensure that the agreement provided employees with a genuine improvement in their terms and conditions of employment compared to the applicable award or safety net.

Having concluded that the severance of the ineffective provisions did not negate the effectiveness of the remaining agreement and that the agreement met the "better off overall test", the Commission approved the Manildra Flour Mills Enterprise Agreement 2017-2019. The decision was based on the premise that the agreement provided a fair and reasonable outcome for both the employer and the employees, and that the approval would facilitate industrial harmony within the workplace. The approval was granted on the condition that the ineffective provisions were removed and the remaining provisions were implemented in accordance with the Fair Work Act.

Manildra Flour Mills (Manufacturing) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established