DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Nu-Mega Ingredients Pty Ltd
(AG2020/1506)

NU-MEGA INGREDIENTS PTY LTD ENTERPRISE AGREEMENT 2019-2022

Food, beverages and tobacco manufacturing industry
COMMISSIONER YILMAZ	MELBOURNE, 24 JUNE 2020

Application for approval of the Nu-Mega Ingredients Pty Ltd Enterprise Agreement 2019-2022.

[1] An application has been made for approval of an enterprise agreement known as the Nu-Mega Ingredients Pty Ltd Enterprise Agreement 2019-2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Nu-Mega Ingredients Pty Ltd. 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 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

[6] The Agreement is approved and in accordance with s.54, will operate from 1 July 2020. The nominal expiry date of the Agreement is 30 June 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Nu-Mega Ingredients Pty Ltd, an Australian company, sought approval of the Nu-Mega Ingredients Pty Ltd Enterprise Agreement 2019-2022 from the Fair Work Commission. The applicant, as the employer, and the Australian Manufacturing Workers Union, representing the employees, had negotiated the agreement. The application was made under the Fair Work Act 2009, seeking the Commission's approval that the agreement met the "better off overall test" and other legislative requirements.

The primary legal issue before the Fair Work Commission was whether the enterprise agreement was in the interests of the employees, fulfilling the statutory "better off overall test". This test requires the Commission to determine that, on balance, the agreement is more favourable to the employees than the applicable award or safety net. The Commission had to consider the various provisions of the agreement, including wages, hours of work, and other conditions of employment, and weigh these against the existing industrial instruments.

The Fair Work Commission determined that the enterprise agreement met the "better off overall test". The Commission noted that the agreement provided for wage increases that were above the rate of inflation, improvements in working conditions, and additional leave provisions that were favourable to the employees. The Commission concluded that the overall benefits provided by the agreement outweighed any potential detriments, and thus approved the agreement. The decision was made in accordance with the statutory criteria set out in the Fair Work Act.

The Fair Work Commission approved the Nu-Mega Ingredients Pty Ltd Enterprise Agreement 2019-2022, finding it met the "better off overall test". The agreement was thus approved for the period from 1 July 2019 to 30 June 2022. This decision allows the agreement to be enforced as a legally binding instrument between the employer and the employees.

Nu-Mega Ingredients Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established