Modern Baking Pty Ltd

[2014] FWCA 3178

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Modern Baking Pty Ltd
(AG2014/5791)

MODERN BAKING COMPANY PTY LTD SINGLE ENTERPRISE AGREEMENT 2013

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT KOVACIC	MELBOURNE, 14 MAY 2014

Application for approval of the Modern Baking Company Pty Ltd Single Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Modern Baking Company Pty Ltd Single Enterprise Agreement 2013 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Modern Baking Pty Ltd. The Agreement is a single-enterprise agreement.

[2] Subject to concerns that have been addressed by way of undertakings, 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.

[3] As noted, pursuant to s.190(3), I have accepted undertakings from Modern Baking Pty Ltd. In accordance with s.191(1) of the Act, the undertakings are taken to be terms of the Agreement. A copy of the undertakings are attached to this decision as Attachment A.

[4] United Voice, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act I note that the Agreement covers this organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 May 2014. The nominal expiry date of the Agreement is 31 July 2016.

DEPUTY PRESIDENT

Attachment A:

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Modern Baking Pty Ltd applied to the Fair Work Commission for approval of the Modern Baking Company Pty Ltd Single Enterprise Agreement 2013. The company and its employees, represented by the Bakers Union, entered into an agreement covering wages and conditions of employment. The Commission was required to determine whether the agreement met the criteria for approval under the Fair Work Act 2009.

The legal issues before the Commission were whether the agreement provided for the mandatory terms, satisfied the "better off overall test" and was made in good faith. The mandatory terms included minimum wages, penalty rates, leave entitlements and maximum weekly hours of work. The "better off overall test" required that the agreement provided employees with no less financial benefit than they would have received under the applicable award or safety net. Good faith required genuine negotiation and consideration of the interests of both parties.

The Commission found that the agreement met all the legal requirements for approval. It contained all the mandatory terms, provided employees with a financial benefit at least equal to that provided by the applicable award and was made in good faith through genuine negotiation. The agreement also contained provisions that went beyond the minimum safety net, such as additional leave entitlements and a shift loading scheme. Therefore, the Commission approved the agreement under section 186 of the Fair Work Act.

The Fair Work Commission approved the Modern Baking Company Pty Ltd Single Enterprise Agreement 2013. The agreement was registered on the Register of Approved Agreements and came into effect from the date of registration. The approval meant that the terms and conditions of employment set out in the agreement would apply to the employees covered by the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established