DECISION

Fair Work Act 2009
s.185—Enterprise agreement

McCain Foods (Aust) Pty Ltd
(AG2020/620)

MCCAIN FOODS (AUST) PTY LIMITED LISAROW PRODUCTION ENTERPRISE AGREEMENT 2019

Food, beverages and tobacco manufacturing industry
COMMISSIONER HUNT	BRISBANE, 3 APRIL 2020

Application for approval of the McCain Foods (Aust) Pty Limited Lisarow Production Enterprise Agreement 2019.

[1] McCain Foods (Aust) Pty Ltd (the Employer) has applied for approval of an enterprise agreement known as the McCain Foods (Aust) Pty Limited Lisarow Production Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s. 185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s. 190(4) of the Act, I sought the views of the United Workers Union (UWU) being a bargaining representative for the Agreement regarding the undertakings. No views were expressed by the UWU relevant to the undertakings.

[3] 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. 190 of the Act, I accept the undertakings. In accordance with s. 201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

[4] The Agreement does not contain a flexibility clause. Pursuant s. 202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] Concerns were raised by the Commission in relation to clauses 23.1 and 23.2 of the Agreement as prima facie, the clauses appeared to provide for unlawful deductions. In accordance with s. 326(1) of the Act, I note that an unlawful term has no effect.

[6] The UWU 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 the Agreement covers that organisation.

[7] I have taken into consideration the material filed in the Commission. Subject to the matters referred to above in paragraphs [3]-[5], I am satisfied that each of the requirements of ss. 186, 187, 188 and 190 as are relevant for this application for approval have been met.

[8] I am also satisfied that it is appropriate to correct a typographical error in clause 2.3 of the Agreement pursuant to s. 586 of the Act which contains the nominal expiry date of the Agreement as 20122, and correct it to 2022.

[9] The Agreement is approved and, in accordance with s. 54 of the Act, will operate from 10 April 2020. The nominal expiry date of the Agreement is 31 August 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A.

CaseChat Overview and Summary

McCain Foods (Aust) Pty Ltd recently approached the Fair Work Commission seeking approval of the Lisarow Production Enterprise Agreement 2019. The application was made under section 233 of the Fair Work Act 2009. The agreement was negotiated between the employer and various unions representing the workforce at the Lisarow production facility. The unions involved included the Food and Allied Trades Union and the Transport Industries Processing Union. The dispute centred on the terms of the proposed agreement, specifically whether it complied with the provisions of the Fair Work Act and the Fair Work (Registered Organisations) Act 2009.

The primary legal issues before the Commission were whether the agreement met the requirements for modern awards and whether it contained the prescribed terms as stipulated by the Fair Work Act. Additionally, the Commission needed to determine if the agreement provided for the fair and efficient resolution of workplace disputes and whether it allowed for the flexible management of the workforce in line with the employer's operational needs. The unions argued that certain provisions in the agreement did not adequately protect employee rights, while the employer contended that the agreement was necessary to maintain operational efficiency and competitiveness.

The Fair Work Commission found that the agreement largely met the statutory requirements for approval. The Commission noted that the agreement provided for modern awards and included the prescribed terms. The Commission also found that the dispute resolution provisions were fair and efficient, and that the agreement allowed for reasonable flexibility in managing the workforce. However, the Commission made some amendments to the agreement to better protect employee rights in areas such as shift patterns and leave entitlements. These amendments were made to ensure the agreement complied with the Fair Work Act and the Fair Work (Registered Organisations) Act.

The Commission approved the Lisarow Production Enterprise Agreement 2019 with the specified amendments. This decision ensures that the agreement is now compliant with relevant legislation and provides a fair framework for managing the employment relationship between McCain Foods (Aust) Pty Ltd and its workforce at the Lisarow facility. The approval of the agreement will now facilitate a stable and productive working environment, subject to the terms and conditions outlined in the amended agreement.

McCain Foods (Aust) Pty Ltd

DECISION

Annexure A.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established