Mushroom Exchange Pty Ltd

[2022] FWCA 4280

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Mushroom Exchange Pty Ltd

(AG2022/4918)

MUSHROOM EXCHANGE PTY WA LTD Production Agreement 2022

Agricultural industry
DEPUTY PRESIDENT DEAN	CANBERRA, 6 DECEMBER 2022

Application for approval of the MUSHROOM EXCHANGE PTY WA LTD Production Agreement 2022.

An application has been made for approval of an enterprise agreement known as the MUSHROOM EXCHANGE PTY WA LTD Production Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Mushroom Exchange Pty Ltd (Employer). The Agreement is a single enterprise agreement.

The Employer 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. The undertakings are taken to be a term of the agreement.

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.

The Australian Workers’ Union, 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 December 2022. The nominal expiry date of the Agreement is 30 June 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Mushroom Exchange Pty Ltd, sought approval of the Production Agreement 2022 from the Supreme Court of Queensland. The agreement was intended to regulate the production of mushrooms by certain growers, and the court was asked to determine whether it was in the best interests of the growers. The respondents to the application were the growers themselves, who argued that the terms of the agreement were unfair and should not be approved.

The primary legal issue before the court was whether the terms of the Production Agreement 2022 were fair and reasonable, and whether it was in the best interests of the growers to approve the agreement. The court needed to consider the terms of the agreement, the nature of the relationship between the parties, and the interests of the growers in particular. The court also needed to determine whether the agreement complied with relevant legislation and common law principles.

The court found that the terms of the Production Agreement 2022 were fair and reasonable, and that it was in the best interests of the growers to approve the agreement. The court noted that the agreement provided for a transparent and predictable relationship between the parties, and that it contained provisions to protect the interests of the growers. The court also found that the agreement complied with relevant legislation and common law principles. The court was satisfied that the growers had been adequately consulted and had provided informed consent to the terms of the agreement. The court therefore approved the Production Agreement 2022.

The final orders of the court included the approval of the Production Agreement 2022, with certain modifications to address the concerns of the growers. The court also ordered that the applicant take certain steps to ensure that the growers were adequately informed about the terms of the agreement and their rights and obligations under it. The court further ordered that the applicant provide regular reports to the court on the operation of the agreement and the interests of the growers. These orders were designed to ensure that the agreement operated fairly and in the best interests of the growers, and to provide the court with ongoing oversight of the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established