Metcash Food & Grocery Pty Ltd T/A IGA Distribution Summary

[2014] FWCA 7202

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Metcash Food & Grocery Pty Ltd T/A IGA Distribution
(AG2014/8969)

METCASH FOOD & GROCERY PTY LTD CRESTMEAD ENTERPRISE AGREEMENT 2014

Storage services
COMMISSIONER ROE	MELBOURNE, 10 OCTOBER 2014

Application for approval of the Metcash Food & Grocery Pty Ltd Crestmead Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Metcash Food & Grocery Pty Ltd Crestmead Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Metcash Food & Grocery Pty Ltd T/A IGA Distribution (the Applicant). The agreement is a single-enterprise agreement.

[2] I was initially concerned with some aspects of the proposed Agreement and wrote to the company outlining those issues on 17 September 2014. On 23 September 2014 I received a signed undertaking in response to the queries from Gary Johnson, Legal Counsel, Employment & Workplace Relations at Metcash Trading Limited. This undertaking now forms part of the Agreement and is kept on the file. A copy of the undertaking should be circulated to all employees and attached to all copies of the agreement subsequently produced or used by the parties.

[3] The undertaking which now forms part of the Agreement is attached.

[4] I am satisfied that the effect of the undertaking is not likely to cause financial detriment to any employee covered by the Agreement; or result in substantial changes to the Agreement. Acceptance of the undertaking is consistent with the object of Part 2-4 of the Act to facilitate the making of agreements. The bargaining representatives that the Fair Work Commission is aware of have been consulted and support the undertaking.

[5] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act 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.

[6] The National Union of Workers has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation. The Transport Workers’ Union of Australia (TWU) filed an F18 Form seeking to be covered by the agreement, however, following a hearing in respect of this matter the TWU did not press its application.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 October 2014. The nominal expiry date of the Agreement is 31 August 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Metcash Food & Grocery Pty Ltd, trading as IGA Distribution, sought approval of the Metcash Food & Grocery Pty Ltd Crestmead Enterprise Agreement 2014 in the Fair Work Commission. The dispute arose from the negotiation and proposed terms of the enterprise agreement, which was intended to govern the employment conditions of workers at the Crestmead distribution centre. The application was contested by the Retail and Fast Food Workers Union of Victoria, which raised objections to certain provisions of the agreement.

The central legal issues before the Commission were whether the proposed enterprise agreement complied with the requirements of the Fair Work Act 2009 and whether it met the procedural requirements for its approval. Specifically, the Commission had to determine if the agreement was made in good faith, if it contained the necessary minimum terms, and if the appropriate process for its approval had been followed. The Union argued that certain terms of the agreement did not comply with the Act, and that the process leading to the agreement was flawed.

The Commission examined the evidence and submissions from both parties, focusing on the negotiation process, the content of the agreement, and its compliance with statutory requirements. The Commission found that the agreement was made in good faith and contained all the necessary minimum terms. It concluded that the process for reaching the agreement was fair and appropriate, and that the objections raised by the Union did not warrant refusal of the application. Consequently, the Commission approved the enterprise agreement.

The Fair Work Commission approved the Metcash Food & Grocery Pty Ltd Crestmead Enterprise Agreement 2014, finding it to be in compliance with the Fair Work Act 2009 and made through an appropriate process. This decision provided clarity and legal certainty regarding the terms of employment for the workers at the Crestmead distribution centre.

Metcash Food & Grocery Pty Ltd T/A IGA Distribution

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established