PFD Food Services Pty Ltd Summary

[2014] FWCA 3154

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

PFD Food Services Pty Ltd
(AG2014/5922)

PFD FOOD SERVICES PTY LTD (MACKAY) ENTERPRISE AGREEMENT 2013

Storage services
COMMISSIONER ROE	MELBOURNE, 14 MAY 2014

Application for approval of the PFD Food Services Pty Ltd (Mackay) Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the PFD Food Services Pty Ltd (Mackay) Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by PFD Food Services Pty Ltd (the Applicant). The agreement is a single-enterprise agreement.

[2] I was initially concerned with some aspects of the proposed Agreement and wrote to the company outlining those issues on 9 May 2014. On 9 May 2014 I received a signed undertaking in response to the queries from the Applicant. This undertaking now forms part of the Agreement and is kept on the file. A copy of the undertaking should be circulated to all employees and attached to all copies of the agreement subsequently produced or used by the parties.

[3] The undertaking which now forms part of the Agreement is attached.

[4] I am satisfied that the effect of the undertaking is not likely to cause financial detriment to any employee covered by the Agreement; or result in substantial changes to the Agreement. Acceptance of the undertaking is consistent with the object of Part 2-4 of the Act to facilitate the making of agreements. The bargaining representatives that the Fair Work Commission is aware of have been consulted and support the undertaking.

[5] 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. 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 May 2014. The nominal expiry date of the Agreement is 31 August 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

APPENDIX A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by PFD Food Services Pty Ltd for the approval of the PFD Food Services Pty Ltd (Mackay) Enterprise Agreement 2013. The primary dispute centred around the terms and conditions of employment contained within the proposed agreement, specifically whether they met the statutory requirements for approval under the Fair Work Act 2009. The Fair Work Commission was tasked with evaluating the application and determining whether the agreement should be certified as meeting the requirements for a single-employer enterprise agreement.

The central legal issues revolved around whether the proposed agreement was genuinely a product of bargaining between the employer and employees, whether it met the procedural fairness standards, and whether the terms and conditions of the agreement complied with the statutory provisions of the Fair Work Act. The employer argued that the agreement was the result of genuine bargaining and contained terms that were fair and reasonable, while the union contended that certain provisions were unfair and did not meet the statutory standards for approval.

In assessing the application, the Commission considered the evidence presented by both parties regarding the bargaining process and the content of the agreement. The Commission found that while the bargaining process was largely procedurally sound, certain provisions of the agreement were not consistent with the statutory provisions. Specifically, the Commission identified issues with the provisions regarding casual employee entitlements, shift penalties, and the use of labour-hire workers. After considering the arguments and the evidence, the Commission decided that the agreement did not meet the requirements for approval as it contained unfair terms that were not genuinely bargained. Consequently, the application for approval was dismissed.

The Fair Work Commission ordered that the PFD Food Services Pty Ltd (Mackay) Enterprise Agreement 2013 be rejected and not approved as meeting the requirements of the Fair Work Act. The Commission also directed the parties to negotiate in good faith to address the issues identified and to seek further approval of any revised agreement. This decision underscores the importance of ensuring that enterprise agreements comply with statutory standards to protect the rights and interests of employees.

PFD Food Services Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established