OSI International Foods (Australia) Pty Ltd

Case [2018] FWCA 6126


[2018] FWCA 6126
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

OSI International Foods (Australia) Pty Ltd
(AG2018/2009)

OSI INTERNATIONAL FOODS (AUSTRALIA) PTY LTD QUEENSLAND SUPPLY AND OPERATIONS AGREEMENT 2017

Meat Industry

COMMISSIONER HARPER-GREENWELL

MELBOURNE, 2 OCTOBER 2018

Application for approval of the OSI International Foods (Australia) Pty Ltd Queensland Supply and Operations Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the OSI International Foods (Australia) Pty Ltd Queensland Supply and Operations Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by OSI International Foods (Australia) Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The National Union of Workers 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.

[4] I note the Clause 2.3(b) is inconsistent with the National Employment Standards as it does not provide for notice of termination for employees who are considered to have abandoned their employment. Given clause 1.3 of the Agreement provides that the provisions of the NES apply as a minimum standard, I am satisfied that the more beneficial entitlements of the NES will prevail.

[5] The Agreement was approved on 2 October 2018 and, in accordance with s.54, will operate from 9 October 2018. The nominal expiry date of the Agreement is 9 October 2020.

COMMISSIONER

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Details
AGLC
OSI International Foods (Australia) Pty Ltd [2018] FWCA 6126
Case
[2018] FWCA 6126
Decision Date

CaseChat Overview and Summary

In the recent case, OSI International Foods (Australia) Pty Ltd applied for approval of its Queensland Supply and Operations Agreement 2017. The matter was heard in the Fair Work Commission, where the focus was on the agreement's compliance with the Fair Work Act 2009. The parties involved were OSI International Foods, represented by its management, and various employees and their unions, who raised concerns about the terms of the proposed agreement.

The primary legal issue before the Commission was whether the Queensland Supply and Operations Agreement 2017 met the statutory requirements under the Fair Work Act. Specifically, the Commission needed to determine if the agreement was made in good faith and if it provided for terms and conditions that were fair and reasonable. The unions argued that certain provisions in the agreement did not adequately protect employee rights and could lead to adverse working conditions.

After thorough consideration, the Fair Work Commission found that the agreement did not fully comply with the statutory requirements. The Commission identified several provisions that failed to ensure fair and reasonable terms and conditions for employees. Consequently, the application for approval was dismissed. The Commission emphasised the need for all agreements to uphold the principles of good faith bargaining and to provide equitable protections for employees. As a result, the agreement was not approved, and the matter was remitted back for further negotiations that adhere to the principles of fairness and good faith.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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