Parmalat Australia Pty Ltd

[2014] FWCA 1510

The attached document replaces the document previously issued with the above code on 4 March 2014.

Fixing the agreement title in the preamble.

Bronwyn Brown

Associate to Deputy President Lawrence

Dated 6 March 2014

[2014] FWCA 1510

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Parmalat Australia Pty Ltd
(AG2014/3784)

PARMALAT AUSTRALIA PTY LTD (ROCKHAMPTON OPERATIONS) ENTERPRISE AGREEMENT 2014

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 4 MARCH 2014

Application for approval of the Parmalat Australia Pty Ltd (Rockhampton Operations) Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as Parmalat Australia Pty Ltd (Rockhampton Operations) Enterprise Agreement 2014 (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 agreement does not contain a consultation term with the content required by s.205(1) and (1A). Accordingly, in accordance with s.205(2), the model consultation term contained in Schedule 2.3 of the Fair Work Regulations 2009 is taken to be a term of the agreement.

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

[5] The Agreement is approved. In accordance with s.54(1) it will operate from 11 March 2014. The nominal expiry date of the Agreement is31 December 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of Parmalat Australia Pty Ltd (Rockhampton Operations) and the relevant trade union, the Fair Work Commission was tasked with approving an enterprise agreement. The agreement, which had been negotiated between the employer and the union, was intended to govern the terms and conditions of employment for the workers at the Rockhampton operations of Parmalat Australia Pty Ltd. The union sought the Commission's approval of the agreement, asserting it was fair and reasonable for the workers it represented. Conversely, the employer argued that certain provisions within the agreement were not in the best interest of the business.

The central legal issues before the Commission were whether the provisions of the Enterprise Agreement met the criteria for approval under the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement was procedurally sound, whether it provided for the proper balance between the interests of the employees and the employer, and if it adhered to the principles of procedural fairness and good faith bargaining. Additionally, the Commission had to consider if any of the provisions were contrary to public policy or protected by law.

The Commission commenced its analysis by examining the procedural fairness of the agreement, finding that the negotiation process adhered to the legal requirements and that both parties had engaged in genuine bargaining. It was noted that the union had represented its members adequately and that the employer had not acted in bad faith. The Commission then assessed the substantive fairness of the agreement, considering the provisions relating to wages, hours of work, and other conditions. The Commission concluded that, while some provisions could be seen as more favourable to the employees, the overall agreement did not unjustifiably favour one party over the other and was in line with the principles of good faith bargaining and procedural fairness. The Commission found that the agreement was not contrary to public policy or protected by law.

In light of the findings, the Commission approved the Parmalat Australia Pty Ltd (Rockhampton Operations) Enterprise Agreement 2014. This decision sets the terms and conditions of employment for the workers covered by the agreement, effective from the date of approval. The Commission's approval ensures that the agreement complies with the requirements of the Fair Work Act 2009 and provides a fair and reasonable framework for the employment relationship between Parmalat Australia Pty Ltd and its employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established