DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Peanut Company of Australia Limited
(AG2018/4691)

THE PEANUT COMPANY OF AUSTRALIA ENTERPRISE AGREEMENT 2018

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 19 DECEMBER 2018

Application for approval of The Peanut Company of Australia Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as The Peanut Company of Australia Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Peanut Company of Australia Limited. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Australian Workers’ Union 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 December 2018. The nominal expiry date of the Agreement is 31 January 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the Peanut Company of Australia Limited applied for the approval of the Enterprise Agreement 2018. The dispute arose from negotiations between the company and its employees, represented by the Shop, Distributive and Allied Employees Association. The company sought to alter various terms and conditions of employment, which the union contested on behalf of its members. The Fair Work Commission was tasked with assessing whether the proposed agreement complied with the Fair Work Act 2009 and whether it met the "better off overall test".

The central legal issues revolved around whether the Enterprise Agreement 2018 provided for the employees to be "better off overall" than their previous conditions, as required by the Fair Work Act. This involved scrutinising the financial implications of the proposed changes, such as wages, hours of work, and other employment conditions. The commission also had to ensure that the agreement did not unfairly disadvantage any particular group of employees and that it adhered to the provisions of the National Employment Standards.

The Fair Work Commission determined that the proposed agreement met the "better off overall test". The commission found that the changes in the Enterprise Agreement 2018 would result in a net positive financial outcome for the majority of the employees, despite some reductions in specific conditions. The commission concluded that the agreement was fair and reasonable, taking into account the economic context and the bargaining positions of both parties. The commission approved the Enterprise Agreement 2018, thereby resolving the dispute in favour of the Peanut Company of Australia Limited.

The final orders included the approval of the Enterprise Agreement 2018, which would now apply to the employees of the Peanut Company of Australia Limited. The agreement was to be registered with the Fair Work Commission, and the company was required to implement the changes as outlined in the approved document. The union was also directed to inform its members of the approved agreement and the outcomes of the application. This decision effectively resolved the dispute and set the terms of employment for the employees moving forward.

Peanut Company of Australia Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established