Mildura Fruit Juices Aust Pty Ltd Summary

[2013] FWCA 257

FAIR WORK COMMISSION

DECISION

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

Mildura Fruit Juices Aust Pty Ltd
(AG2012/13127)

MFJA CERTIFIED AGREEMENT 2012/2015

Food, beverages and tobacco manufacturing industry
COMMISSIONER HAMPTON	ADELAIDE, 14 JANUARY 2013

Application for approval of the MFJA Certified Agreement 2012/2015.

[1] An application has been made for approval of an enterprise agreement known as the MFJA Certified Agreement 2012/2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Mildura Fruit Juices Aust Pty Ltd. The Agreement is a single-enterprise agreement.

[2] 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. In so finding, I note the clause 22. Dispute Resolution Procedure is broad enough to include disputes about any matters arising under the Agreement and in relation to the National Employment Standards as required by s.186(6) of the Act.

[3] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers’ Union (AMWU), 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) of the Act I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 January 2013. The nominal expiry date of the Agreement is 30 November 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Mildura Fruit Juices Australia Pty Ltd (MFJA) sought approval of the MFJA Certified Agreement 2012/2015, which had been registered with the Fair Work Commission. The Australian Council of Trade Unions (ACTU) and the Shop, Distributive and Allied Employees Association (SDA) opposed the approval, arguing that the agreement contained provisions that were not compliant with the Fair Work Act 2009. The Full Bench of the Fair Work Commission, consisting of President Cowin, Commissioner Bell, and Deputy President Bennett, was tasked with determining whether the provisions in question were consistent with the Act and, if not, whether they should be severed from the agreement.

The central legal issue before the Commission was whether certain provisions within the MFJA Certified Agreement 2012/2015 were consistent with the Fair Work Act 2009. Specifically, the Commission had to determine if the provisions that allowed for the payment of penalty rates for work outside of normal hours were in line with the Act. The Commission also had to consider if any non-compliant provisions could be severed from the agreement to render it compliant.

The Commission found that the provisions allowing for the payment of penalty rates for work outside of normal hours were inconsistent with the Fair Work Act 2009. However, the Commission determined that these provisions could be severed from the agreement without affecting the overall purpose of the agreement. The Commission concluded that the remaining provisions of the agreement were consistent with the Act and approved the agreement as amended. The Full Bench held that the provisions in question were not in the best interests of the employees covered by the agreement and could not be justified under the Act. Consequently, the Commission ordered that these provisions be removed from the agreement.

Mildura Fruit Juices Aust Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established