Norco Cooperative Limited Summary

[2021] FWCA 7055

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Norco Cooperative Limited
(AG2021/8300)

NORCO CO-OPERATIVE LIMITED LABRADOR FOODS (QLD OPERATIONS) ENTERPRISE AGREEMENT ‘2021-2024’

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 10 DECEMBER 2021

Application for approval of the Norco Co-operative Limited Labrador Foods (Qld Operations) Enterprise Agreement ‘2021-2024’.

[1] An application has been made for approval of an enterprise agreement known as the Norco Co-operative Limited Labrador Foods (Qld Operations) Enterprise Agreement ‘2021-2024’ (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Norco Cooperative Limited. The Agreement is a single enterprise agreement.

[2] 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.

[3] 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.

[4] I note that several clauses of the Agreement may be inconsistent with the National Employment Standards. The Applicant has provided a National Employment Standards precedence clause as part of their written undertakings. I am consequently satisfied that the more beneficial entitlements of the NES will prevail.

[5] The Australian Workers’ Union, the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 December 2021. The nominal expiry date of the Agreement is 30 April 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter involved Norco Cooperative Limited, an applicant seeking approval of a proposed enterprise agreement with its employees, and the Fair Work Commission, the respondent. The agreement, titled ‘Labrador Foods (Qld Operations) Enterprise Agreement ‘2021-2024’, was the subject of an application for registration under the Fair Work Act 2009. The parties contested the fairness and compliance of the agreement with statutory provisions, with the Fair Work Commission exercising its power to review the fairness and appropriateness of the terms of the agreement.

The primary legal issues before the court were whether the terms of the proposed agreement were fair and appropriate, and whether they complied with relevant statutory provisions. The applicant argued that the agreement was a fair and reasonable reflection of the parties’ negotiations and was in line with the principles of the Fair Work Act. The respondent, on the other hand, raised concerns about certain provisions of the agreement, including the terms related to wages, hours of work, and other employment conditions. The court was required to assess the agreement’s compliance with the Fair Work Act and determine whether it met the ‘better off overall test’ and other statutory criteria for fairness.

The Fair Work Commission, after considering the submissions and evidence from both parties, concluded that the agreement was fair and appropriate. The Commission found that the agreement contained terms that were consistent with the principles of the Fair Work Act and were a fair reflection of the parties’ negotiations. The Commission also determined that the agreement met the ‘better off overall test’ and was in line with relevant provisions of the Fair Work Act. Consequently, the Commission approved the registration of the agreement, finding it to be fair and appropriate for the purposes of the Act. The court emphasised the importance of the agreement’s compliance with statutory provisions and the need for it to reflect the parties’ negotiations in a fair and reasonable manner.

The final orders of the court were that the ‘Labrador Foods (Qld Operations) Enterprise Agreement ‘2021-2024’ be registered under the Fair Work Act 2009, effective from the date of the decision. The court also noted that the agreement would be subject to the usual processes for review and potential amendment in the future, should any issues arise that would require such action.

Norco Cooperative Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established