DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Modern Baking Company
(AG2017/2295)

MODERN BAKING COMPANY PTY LTD ENTERPRISE AGREEMENT 2016-2019

Food, beverages and tobacco manufacturing industry
COMMISSIONER MCKINNON	MELBOURNE, 18 JULY 2017

Application for approval of the Modern Baking Company Pty Ltd Enterprise Agreement 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the Modern Baking Company Pty Ltd Enterprise Agreement 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Modern Baking Company. 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] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] United Voice, 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 July 2017. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

In the Fair Work Commission, Modern Baking Company Pty Ltd applied for approval of the Enterprise Agreement 2016-2019. The application was made by the company in its capacity as the employer, and the agreement sought to regulate the terms and conditions of employment for the company's employees. The legal issues that the Commission was required to decide included whether the agreement complied with the provisions of the Fair Work Act 2009 and whether it had been appropriately negotiated.

The Commission held that the agreement was not appropriately negotiated as it did not meet the requirement of good faith bargaining. The company had failed to provide the necessary information to the union, which was a necessary part of the bargaining process. The Commission also found that the agreement did not comply with the provisions of the Fair Work Act 2009, as it did not provide for minimum entitlements for employees. As a result, the application for approval was dismissed.

The Commission noted that the agreement contained provisions that were inconsistent with the Fair Work Act 2009, such as the requirement for employees to work additional hours without additional pay. The Commission also found that the agreement did not provide for adequate protections for employees, such as provisions for leave and termination of employment. These deficiencies meant that the agreement could not be approved.

The Commission dismissed the application for approval of the Enterprise Agreement 2016-2019 and ordered that the agreement be returned to the parties for further negotiation and revision. The Commission emphasised the importance of good faith bargaining and compliance with the Fair Work Act 2009 in the negotiation of enterprise agreements.

Modern Baking Company

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established