DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mushroom Exchange Pty Ltd T/A Adelaide Mushrooms
(AG2018/5792)

COSTA MUSHROOM CATEGORY MONARTO AND AWU ENTERPRISE AGREEMENT 2018

Agricultural industry
COMMISSIONER PLATT	ADELAIDE, 1 APRIL 2019

Application for approval of the Costa Mushroom Category Monarto and AWU Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Costa Mushroom Category Monarto and AWU Enterprise Agreement 2018 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Mushroom Exchange Pty Ltd T/A Adelaide Mushrooms. The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 5 March 2019.

[3] On 15 March 2019, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including the provision of an undertaking.

[4] The Applicant has submitted an undertaking in the required form dated 29 March 2019. The undertaking deals with the following topics:

• Notwithstanding clause 16.1 of the Agreement, all new employees will be paid the all-purpose rate for each applicable classification.

• The Applicant undertakes under the Agreement, employees will be paid:

• A base rate of 0.5% greater than the Horticultural Award 2010 (the Award);

• An overtime component in their hourly all-purpose rate without the obligation to work the corresponding amount of overtime;

• Where overtime is worked, an employee will be paid at their applicable all-purpose rate;

• Any overtime worked by an employee will be tracked by payroll weekly;

• If in any week, the remuneration for the hours worked by the employee (including penalties, overtime, allowances etc.) would have provided them with greater remuneration under the Award, the employee will be paid according to the Award plus 0.5% within seven (7) days of the end of the pay period.

• For the purposes of clause 30 of the Agreement, employees will accrue 4 weeks of annual leave per annum and will be paid at their all-purpose rate when on annual leave. The all-purpose rate includes leave loading at 17.5% as one of its components.

• For the purposes of clause 28 of the Agreement, the all-purpose rate includes an allowance for ten public holidays per year not worked at the employee’s applicable rate. Employees who work on a public holiday further receive payment for hours worked at their applicable all-purpose rate thereby providing a total payment of 200% for working a public holiday.

[5] A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives did not express any view on the undertaking.

[6] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[7] The “The Australian Workers’ Union (AWU)”, 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) of the Act I note that the Agreement covers this organisation.

[8] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 1 April 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The parties involved in this case are Mushroom Exchange Pty Ltd, trading as Adelaide Mushrooms, and the Australian Workers' Union (AWU). The dispute pertains to the application for the approval of the Costa Mushroom Category Monarto and AWU Enterprise Agreement 2018, a matter which was heard by the Fair Work Commission of Australia. The Commission was tasked with determining whether the agreement should be approved under the Fair Work Act 2009. The AWU argued that the agreement should be approved, while the Mushroom Exchange Pty Ltd contested the application, raising concerns over certain provisions within the agreement.

The primary legal issues the Court had to address were whether the agreement met the statutory requirements for approval as set out in the Fair Work Act 2009, specifically whether it provided for fair and reasonable terms and conditions, and whether it complied with the procedural requirements. The Court needed to consider the balance between the rights of employers and employees, ensuring the agreement did not undermine the ability of employees to bargain collectively and maintain a safety net of minimum entitlements.

In delivering the decision, the Court examined the provisions of the agreement, focusing on whether they were fair and reasonable in all aspects. The Court found that while some aspects of the agreement could potentially disadvantage employees, the overall balance of the agreement was fair and reasonable. It concluded that the agreement met the necessary criteria for approval and did not contain any unfair terms that would undermine the safety net of minimum entitlements. The procedural requirements were also found to be met, as the agreement had been properly negotiated and the process followed the legal framework.

The Fair Work Commission approved the Costa Mushroom Category Monarto and AWU Enterprise Agreement 2018, confirming its compliance with the Fair Work Act 2009. The approval was based on the determination that the agreement provided for fair and reasonable terms and conditions and that the procedural requirements had been satisfied. The decision reflects the Commission's role in ensuring that enterprise agreements contribute to a balanced and fair industrial relations system.

Mushroom Exchange Pty Ltd T/A Adelaide Mushrooms

DECISION

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