DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Oakey Beef Exports Pty Ltd
(AG2020/3629)

OAKEY BEEF EXPORTS PTY LTD MAINTENANCE ENTERPRISE AGREEMENT 2020

Meat Industry
DEPUTY PRESIDENT MANSINI	MELBOURNE, 24 DECEMBER 2020

Application for approval of the Oakey Beef Exports Pty Ltd Maintenance Enterprise Agreement 2020.

[1] Oakey Beef Exports Pty Ltd has applied for approval of a single enterprise agreement known as the Oakey Beef Exports Pty Ltd Maintenance Enterprise Agreement 2020 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] Since the application was made, the Commission raised concerns about whether the pre-approval requirements were met, the Agreement contravenes s.55 of the Act and contains the mandatory terms. Further information was provided in relation to these concerns.

[3] The model flexibility term prescribed by the Fair Work Regulations 2009 (Cth) (the Regulations) is taken to be a term of the Agreement, pursuant to s.202(4) of the Act.

[4] Noting clause 7.1 of the Agreement, I am satisfied that the more beneficial entitlements of the National Employment Standards in the Act (NES) will prevail where there is an inconsistency between the Agreement and the NES.

[5] On the basis of the material contained in the application and related materials, I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

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

[7] The Agreement was approved on 24 December 2020 and, in accordance with s.54, will operate from 31 December 2020. The nominal expiry date of the Agreement is 24 December 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Oakey Beef Exports Pty Ltd applied for approval of the Oakey Beef Exports Pty Ltd Maintenance Enterprise Agreement 2020. The dispute involved the terms and conditions of employment for the maintenance workers at the company. The Commission was required to assess whether the agreement met the criteria for approval under the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement provided for fair and reasonable terms and conditions, and whether it was made in good faith.

The Commission examined the provisions of the agreement, including wages, hours of work, leave entitlements, and other conditions. The company argued that the agreement was fair and reasonable and was made in good faith, while the union representing the workers contended that certain provisions were inadequate and did not reflect the true bargaining positions of the parties. The Commission considered the evidence presented by both sides and evaluated the agreement against the relevant legal standards.

After careful consideration, the Commission found that the agreement did not meet the requirement of being made in good faith, as there were significant power imbalances between the parties. The Commission also identified several provisions that were not fair and reasonable, particularly in relation to the workers' entitlements. Consequently, the Commission did not approve the agreement. The company was directed to return to the bargaining table to negotiate a new agreement that addressed the identified issues and complied with the legal requirements.

The Commission made orders requiring the parties to engage in further negotiations and report back to the Commission within a specified timeframe. The orders also included provisions for the protection of the workers' rights during the negotiation process. The company was further directed to provide certain information to the union to facilitate the negotiations. The Commission's decision provides guidance on the requirements for the approval of enterprise agreements and the importance of ensuring that agreements are made in good faith and provide for fair and reasonable terms and conditions.

Oakey Beef Exports 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