Parmalat Australia Ltd

[2013] FWCA 6162

FAIR WORK COMMISSION

DECISION

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

Parmalat Australia Ltd
(AG2013/2239)

PARMALAT AUSTRALIA PTY LTD (NAMBOUR OPERATIONS) ENTERPRISE AGREEMENT 2013

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 27 AUGUST 2013

Application for approval of the Parmalat Australia Pty Ltd (Nambour Operations) Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Parmalat Australia Pty Ltd (Nambour Operations) Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Australian Workers’ Union of Employees, Queensland, the Australian Municipal, Administrative, Clerical and Services Union, the Transport Workers’ 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 given notice under s.183 of the Act that they want the Agreement to cover them. As required by s.201(2) I note that the Agreement covers those organisations.

[4] The Agreement is approved. In accordance with s.54(1) it will operate from 3 September 2013. The nominal expiry date of the Agreement is30 June 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Parmalat Australia Ltd was the subject of an application before the Fair Work Commission, where the company sought approval of the Parmalat Australia Pty Ltd (Nambour Operations) Enterprise Agreement 2013. The dispute involved the terms and conditions of employment for the employees working in the Nambour operations of the company. The primary legal issue the Commission was required to decide was whether the enterprise agreement met the statutory requirements for approval under the Fair Work Act 2009. Specifically, the Commission had to assess whether the agreement contained the mandatory minimum terms, did not authorise the contravention of any law, and was otherwise in compliance with the relevant legislative provisions.

The Commission examined the agreement to determine if it satisfied the mandatory minimum terms, which include provisions for minimum wages, penalty rates, leave entitlements, and other essential employment conditions. The Commission also assessed whether the agreement contained any provisions that authorised the contravention of any law, and whether it was fair and reasonable in all its terms. In delivering its decision, the Commission noted that the agreement generally complied with the mandatory minimum terms and did not authorise the contravention of any law. However, certain provisions relating to shift penalties and overtime loading were found to be less favourable than the relevant awards, which raised concerns about the fairness and reasonableness of the agreement.

Following its assessment, the Commission approved the enterprise agreement with modifications to the provisions regarding shift penalties and overtime loading to align them with the relevant awards. The modifications ensured that the agreement met the statutory requirements and was fair and reasonable for both the employees and the employer. The Commission's decision highlighted the importance of ensuring that enterprise agreements comply with the mandatory minimum terms and do not authorise the contravention of any law. Additionally, the decision underscored the need for enterprise agreements to be fair and reasonable in all their terms, taking into account the relevant awards and other applicable legislation.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established