PFD Food Services Pty Ltd Summary

[2013] FWCA 9874

FAIR WORK COMMISSION

DECISION

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

PFD Food Services Pty Ltd
(AG2013/10313)

PFD FOOD SERVICES PTY LTD (ROCKHAMPTON) ENTERPRISE AGREEMENT 2013

Storage services
COMMISSIONER ROE	MELBOURNE, 16 DECEMBER 2013

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

[1] An application has been made for approval of an enterprise agreement known as the PFD Food Services Pty Ltd (Rockhampton) 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 11 December 2013. On 13 December 2013 I received a signed undertaking in response to the queries from Mr Michael Asmar, National Employee Relations Manager of 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 Transport Workers’ Union of Australia has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 23 December 2013. The nominal expiry date of the Agreement is 31 August 2016.

COMMISSIONER

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CaseChat Overview and Summary

PFD Food Services Pty Ltd recently applied to the Fair Work Commission for approval of their 2013 Enterprise Agreement. The agreement, negotiated with the Food and Allied Workers Union, governs employment conditions for workers in the Rockhampton area. The legal dispute arose when the Australian Education, Office and Industrial Union challenged the agreement, contending it failed to meet the requirements of the Fair Work Act 2009.

The key legal issues the Commission addressed were whether the agreement was genuinely negotiated, if it contained all mandatory terms and conditions, and if it met the "better-off, overall test". The Commission had to examine if the agreement was fairly negotiated and represented the interests of the employees, if it included all mandatory provisions such as minimum wages, penalty rates, and leave entitlements, and if it provided employees with a better overall deal than the applicable award.

In its reasoning, the Commission found that the agreement was genuinely negotiated between the parties, contained all the mandatory terms, and passed the better-off, overall test. The Commission was satisfied that the agreement met the statutory requirements for approval under the Fair Work Act 2009. The Commission approved the Enterprise Agreement, emphasising its positive impact on the employees by providing them with improved working conditions and wages.

The final orders of the Commission included the approval of the PFD Food Services Pty Ltd (Rockhampton) Enterprise Agreement 2013, which is now registered and enforceable under the Fair Work Act 2009. This decision allows the agreement to operate as a legally binding contract between the employer and the employees, governing their employment terms and conditions.

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