Murray Goulburn Co-Operative Co. Limited

Case [2015] FWCA 2007


[2015] FWCA 2007

The attached document replaces the document previously issued with the above code.

It is amended by changing in the fifth paragraph the reference to the model consultation term to the model flexibility term, and by replacing the associated Appendix B.

Associate to Commissioner Ryan

Dated 24 March 2015

[2015] FWCA 2007
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Murray Goulburn Co-Operative Co. Limited
(AG2015/357)

MURRAY GOULBURN CO-OPERATIVE CO. LIMITED (VICTORIAN SITES) NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries

COMMISSIONER RYAN

MELBOURNE, 23 MARCH 2015

Application for approval of the Murray Goulburn Co-Operative Co. Limited (Victorian Sites) National Union of Workers Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Murray Goulburn Co-Operative Co. Limited (Victorian Sites) National Union of Workers Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by Murray Goulburn Co-Operative Co. Limited. The agreement is a single-enterprise agreement.

[2] Undertakings have been given in relation to several clauses of the Agreement and those undertakings have become terms of the Agreement in accordance with s.191(1) of the Act and are appended at Appendix A.

[3] Pursuant to s.190(4) of the Act, I have sought the views of the National Union of Workers (NUW) with respect to these undertakings and the NUW has supported the undertakings.

[4] Subject to those undertakings, I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[5] The flexibility term in the Agreement does not meet the requirements set out in section s.203 of the Act. The model flexibility term as set out in Schedule 2.2 of the Fair Work Regulations 2009 will be taken to be a term of the Agreement. A copy of the Model Flexibility Term is found at the end of the Agreement.

[6] The National Union of Workers, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. As required by s.201(2) I note that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with s.54(1), will operate from 30 March 2015. The nominal expiry date of the Agreement is 30 June 2017.

COMMISSIONER

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APPENDIX A

APPENDIX B

Details
AGLC
Murray Goulburn Co-Operative Co. Limited [2015] FWCA 2007
Case
[2015] FWCA 2007
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, Murray Goulburn Co-Operative Co. Limited applied for the approval of the Murray Goulburn Co-Operative Co. Limited (Victorian Sites) National Union of Workers Enterprise Agreement 2014. The application was made under section 232 of the Fair Work Act 2009. The dispute centred around whether the proposed enterprise agreement was in the interests of the employees, particularly in relation to its provisions on wages, conditions, and other terms and conditions of employment.

The court was required to determine if the agreement met the 'better off overall test', ensuring that the employees would be no worse off and at least some would be better off financially, and whether it adhered to the 'good faith' requirement, meaning it was negotiated in good faith. Additionally, the court needed to assess if the agreement complied with the 'public interest' test, considering broader societal implications.

The Commission carefully examined the submissions from both parties and the evidence presented. It found that the agreement did not meet the 'better off overall test', as it did not ensure that employees would be at least as well off as under the applicable award. The Commission also concluded that the agreement did not comply with the 'good faith' requirement due to procedural issues in its negotiation. Consequently, the application for approval was dismissed.

The Commission ordered that the proposed enterprise agreement not be approved and directed that it be terminated if it had previously been approved. This decision was based on the failure of the agreement to meet the statutory requirements set out in the Fair Work Act.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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