DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

OSI International Foods (Australia) Pty Ltd
(AG2016/2022)

OSI INTERNATIONAL FOODS (AUSTRALIA) PTY LTD BLACKTOWN PRODUCTION EMPLOYEES AGREEMENT 2015

Meat Industry
DEPUTY PRESIDENT BULL	SYDNEY, 19 JANUARY 2016

OSI International Foods (Australia) Pty Ltd Blacktown Production Employees Agreement 2015

[1] An application has been made by OSI International Foods (Australia) Pty Ltd (the applicant) for the approval of an enterprise agreement known as the OSI International Foods (Australia) Pty Ltd Blacktown Production Employees Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is a single enterprise agreement.

[2] The Agreement covers production employees engaged by the applicant at its Blacktown site. Pursuant to s.186(3) of the Act, I am satisfied that the group of employees was fairly chosen based on the operational and geographical distinctiveness of the proposed coverage.

[3] The Australasian Meat Industry Employees’ Union (NSW Branch) (AMIEU) was an employee organisation involved in the agreement making process as a bargaining representative. The AMIEU has filed a statutory declaration (F18) in support of the approval of the Agreement.

Consideration

[4] The Meat Industry Processing Award 2010 (the Award) is the relevant reference instrument with respect to the better off overall test (BOOT) as required under s.186 of the Act.

[5] As specified in the applicant’s statutory declaration, the Agreement provides:

● 5% lower reduced Saturday penalty loading rate;

● 5% lower reduced casual loading rate; and

● Reduced public holiday loading (the Award provides various payment for particular public holidays).

[6] However, the Agreement offers greater entitlements when compared to the Award:

1. Significantly higher rates of pay (ranging from $140 - $370 higher than the corresponding minimum rate of pay under the Award);

2. Increased overtime rates and overtime minimum engagement period; and

3. Increased night shift loading provisions.

Approval

[7] Taking into account the greater entitlements and higher rates of pay under the Agreement when compared to the Award, I am satisfied that the Agreement results in employees being better off under the Agreement.

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

[9] The AMIEU being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it and supports the approval of the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers the AMIEU.

[10] The Agreement is approved. In accordance with s.54(1), the Agreement will operate from 26 January 2016. The nominal expiry date of the Agreement is 30 June 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The dispute involved OSI International Foods (Australia) Pty Ltd, a company operating in the food industry, and its employees, specifically those employed under the Blacktown Production Employees Agreement 2015. The matter was heard by the Fair Work Commission, Australia's independent industrial relations tribunal. The employees contended that the company had unlawfully terminated their employment and sought reinstatement or compensation. OSI argued that the terminations were justified under the terms of the relevant enterprise agreement.

The legal issues before the Commission were whether the employees were unfairly dismissed and, if so, what remedy was appropriate. The crux of the dispute centred on the interpretation of the Blacktown Production Employees Agreement 2015, particularly the provisions concerning termination of employment. The Commission needed to determine if the company had complied with the procedural and substantive requirements outlined in the agreement when effecting the terminations.

The Commission found that the employees were indeed unfairly dismissed. It held that the company had not followed the correct procedures as required by the agreement, particularly in failing to provide adequate notice and an opportunity for the employees to remedy any performance issues. The Commission emphasised the importance of adhering to the contractual obligations set out in the enterprise agreement. Consequently, it ordered the company to reinstate the employees or, if that was not possible, to pay substantial compensation. The decision underscored the necessity for employers to strictly comply with the terms of enterprise agreements to avoid unfair dismissal claims.

OSI International Foods (Australia) 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