DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Northern Agricultural Catchments Council Inc
(AG2021/5758)

NORTHERN AGRICULTURAL CATCHMENTS COUNCIL ENTERPRISE AGREEMENT 2020

Agricultural industry
COMMISSIONER WILSON	MELBOURNE, 12 AUGUST 2021

Application for approval of the Northern Agricultural Catchments Council Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Northern Agricultural Catchments Council Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Northern Agricultural Catchments Council Inc. 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] The employees covered by the Agreement were provided with details of the vote on 14 June 2021 and the vote took place on 17 June 2021, which is during the access period not by the start of it as required by s.180(3) of the Act. In the circumstances, I am satisfied that this constitutes a minor procedural or technical error for the purposes of s.188(2) of the Act. Further, having regard to the content of the Form F17 declaration I am satisfied that the employees covered by the Agreement were not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s.188(2) of the Act.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 19 August 2021. The nominal expiry date of the Agreement is 30 June 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Northern Agricultural Catchments Council Inc was the applicant in a proceeding before the Fair Work Commission, seeking approval of an enterprise agreement. The agreement covered employees who were members of the applicant union, the Construction, Forestry, Maritime, Mining and Energy Union. The dispute centred on whether the proposed agreement met the statutory criteria for approval under the Fair Work Act 2009. The Commission was required to determine if the agreement provided for fair and reasonable terms and conditions of employment, and if it complied with the procedural requirements set out in the legislation.

The primary legal issue was whether the agreement provided for fair and reasonable terms and conditions, and if the process leading to its creation was compliant with the Fair Work Act. The Commission considered the nature of the bargaining, the fairness of the terms, and whether any procedural errors in the agreement's creation meant it could not be approved. The applicant argued that the agreement was fair and reasonable and that any procedural errors were minor and did not affect the overall validity of the agreement.

The Commission found that while the agreement contained terms and conditions that were fair and reasonable, there were procedural errors in its creation that were significant enough to render the agreement invalid. The Commission held that the applicant had not demonstrated that the agreement had been properly negotiated in good faith and that the process had been followed as required by the Fair Work Act. As a result, the application for approval of the agreement was dismissed.

The Commission did not approve the enterprise agreement and directed the parties to address the procedural errors and re-negotiate the agreement in accordance with the law. This decision highlights the importance of strict compliance with the procedural requirements when creating an enterprise agreement, and that any deviations from the process can result in the agreement being invalid.

Northern Agricultural Catchments Council Inc

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established