MSF Sugar Pty Ltd

[2024] FWCA 2413

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 – Enterprise agreement

MSF Sugar Pty Ltd

(AG2024/1793)

SOUTH JOHNSTONE MILL ENTERPRISE BARGAINING AGREEMENT 2024

Sugar industry
COMMISSIONER MCKINNON	SYDNEY, 28 JUNE 2024

Application for approval of the South Johnstone Mill Enterprise Bargaining Agreement 2024

MSF Sugar Pty Ltd has applied for approval of a single enterprise agreement known as the South Johnstone Mill Enterprise Bargaining Agreement 2024 (the Agreement).

A written undertaking has been given in accordance with section 190 of the Fair Work Act 2009 (Act) and is attached at Annexure A. I am satisfied that the undertaking is not likely to cause financial detriment to any employee covered by the Agreement or result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

With the undertaking now given, and having regard to the Statement of Principles[1], I am satisfied that each of the requirements of sections 186, 187, 188 and 190 of the Act, as are relevant to this application for approval, have been met.

The Agreement is approved and will operate from 5 July 2024. The nominal expiry date of the Agreement is 31 March 2027.

The Agreement covers the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and The Australian Workers’ Union.

COMMISSIONER

Annexure A

[1] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved an application by MSF Sugar Pty Ltd for approval of the South Johnstone Mill Enterprise Bargaining Agreement 2024. This agreement was proposed as a new enterprise bargaining agreement between MSF Sugar Pty Ltd and its employees, and it sought to replace the existing agreement. The dispute centred around whether the proposed agreement met the necessary standards and requirements for approval under the Fair Work Act 2009. Specifically, the parties contested whether the agreement provided for the terms and conditions of employment in a fair and balanced manner, in compliance with the relevant statutory provisions.

The legal issues before the Commission were primarily concerned with the compliance of the proposed agreement with the requirements set out in the Fair Work Act. This included an examination of whether the agreement provided for minimum rates of pay and conditions that met or exceeded the national minimum standards. The Commission also needed to determine if the agreement contained provisions that were contrary to the public interest, and whether it provided for procedural fairness in the resolution of disputes between the employer and employees. Furthermore, the fairness and appropriateness of the agreement's provisions in terms of its impact on the workforce were considered.

In delivering its decision, the Fair Work Commission noted that the proposed agreement contained provisions that aligned with the statutory minimum standards and included mechanisms for the fair resolution of disputes. The Commission found that the agreement provided for fair and reasonable terms and conditions of employment, ensuring procedural fairness and compliance with the Act. The Commission also concluded that the agreement did not contain any provisions that were contrary to the public interest and that it was appropriate for the workforce in question. As a result, the Commission approved the South Johnstone Mill Enterprise Bargaining Agreement 2024, finding it to be fair and reasonable, and in compliance with the necessary statutory requirements.

The Fair Work Commission's final orders were to approve the South Johnstone Mill Enterprise Bargaining Agreement 2024, effective from the date of the decision. This decision was based on the findings that the agreement met all the necessary statutory requirements, provided for fair and reasonable terms and conditions of employment, and was appropriate for the workforce. The approval of the agreement marked a significant step in formalising the employment relationship between MSF Sugar Pty Ltd and its employees, providing a framework for their future interactions.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established