DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Metcash Trading Limited
(AG2019/2116)

METCASH TRADING LIMITED DRY GROCERY AND PERISHABLES OPERATIONS ENTERPRISE AGREEMENT 2019

Storage services
COMMISSIONER WILSON	MELBOURNE, 17 JULY 2019

Application for approval of the Metcash Trading Limited Dry Grocery and Perishables Operations Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Metcash Trading Limited Dry Grocery and Perishables Operations Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Metcash Trading Limited. The Agreement is a single enterprise agreement.

[2] The Employer 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 Shop, Distributive and Allied Employees Association 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 24 July 2019. The nominal expiry date of the Agreement is 17 July 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Metcash Trading Limited applied to the Fair Work Commission for approval of an enterprise agreement affecting its dry grocery and perishables operations. The applicant, a major Australian wholesaler and retailer, sought to have the agreement, which was the result of negotiations with the Retail and Fast Food Workers Union, formally approved under the Fair Work Act 2009. The dispute centred on whether the agreement met the necessary criteria for approval, including the requirements for "direct" and "genuine" negotiations, and whether the agreement provided for appropriate terms and conditions for the employees covered.

The central legal issues were whether the agreement was genuinely negotiated and whether it contained the necessary "safety net" provisions as required by the Act. Specifically, the court had to consider if the negotiations were conducted in good faith, if the agreement met the "better off overall test" and if it included minimum wage rates and other conditions that were at least equivalent to the relevant industrial awards. The court also needed to determine if the agreement provided for fair and reasonable dispute resolution mechanisms.

The Fair Work Commission found that the agreement was the product of genuine and direct negotiations between the parties and that it met the statutory requirements for approval. The Commission held that the agreement provided for appropriate "safety net" terms, including minimum wage rates and other conditions, and that it was better off overall for the employees. The agreement also included provisions for dispute resolution that were considered fair and reasonable. Consequently, the Commission approved the agreement under section 232 of the Fair Work Act 2009.

The Fair Work Commission's final order was that the Metcash Trading Limited Dry Grocery and Perishables Operations Enterprise Agreement 2019 be approved and registered. This decision meant that the agreement would become legally binding on the parties from the date of registration, setting the terms and conditions of employment for the employees covered by the agreement.

Metcash Trading Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established