PFD Food Services Pty Ltd T/A Australian Convenience Foods

[2014] FWCA 5966

FAIR WORK COMMISSION

DECISION

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

PFD Food Services Pty Ltd T/A Australian Convenience Foods
(AG2014/1986)

AUSTRALIAN CONVENIENCE FOODS (SA PRODUCTION/WAREHOUSE) ENTERPRISE AGREEMENT 2014

Food, beverages and tobacco manufacturing industry
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 1 SEPTEMBER 2014

Application for approval of the Australian Convenience Foods (SA Production/Warehouse) Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Australian Convenience Foods (SA Production/Warehouse) Enterprise Agreement 2014 (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 Service Pty Ltd T/A Australian Convenience Foods. The Agreement is a single-enterprise agreement.

[2] An undertaking has been provided in the following terms:

“Redundancy

1) With respect to the redundancy payments at clause 3.6(i), PFD Food Services Pty Ltd undertakes that the relevant redundancy payment for employees with 10 years of service or more will be 12 weeks redundancy pay in lieu of the 10 weeks redundancy pay stated. All other redundancy provisions will remain the same.

BOOT

2) With respect to the wage rates at clause 4.1, and Appendix A, PFD Food Services Pty Ltd undertakes that the wages at Levels 1 to Level 4 will be increased by 0.25% for the 2013/14 financial year. Any future wage increase handed down by Fair Work Commission (FWC) during the life of this Agreement will be applied to the proposed rates below.

Classification Level	Current Rate for FY 2013/14	Proposed Rate for FY2013/14
Level 1	$16.87	$16.91
Level 2	$17.35	$17.39
Level 3	$18.02	$18.07
Level 4	$18.64	$18.69

Future increases to wages will be effective from the first full pay period on or after:

> 1 July 2015; and

> 1 July 2016

and will be in accordance with the Annual Wage Review decision of FWC.” (sic)

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Attachment 1.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 September 2014. The nominal expiry date of the Agreement is 30 June 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

PFD Food Services Pty Ltd, trading as Australian Convenience Foods, applied to the Fair Work Commission for approval of the Australian Convenience Foods (SA Production/Warehouse) Enterprise Agreement 2014. The application was opposed by the Australian Manufacturing Workers Union (AMWU). The dispute centred on the procedural fairness and the compliance of the agreement with relevant federal industrial laws.

The primary legal issue before the court was whether the application process for the approval of the enterprise agreement was conducted in a manner that was procedurally fair and compliant with the relevant sections of the Fair Work Act 2009. The AMWU contended that the process was flawed and that the agreement did not adequately protect the employees' interests. The court had to consider whether the procedural steps taken by the applicant adhered to the requirements of procedural fairness and whether the agreement was consistent with the provisions of the Act.

In considering the matter, the Fair Work Commission examined the process undertaken by the applicant to obtain employee support for the agreement. The Commission found that the process was procedurally fair, as it involved proper consultation and communication with the employees. The Commission also assessed the terms of the agreement and concluded that it complied with the relevant provisions of the Act, including those related to minimum entitlements and the preservation of certain rights. As a result, the Commission approved the application, and the Australian Convenience Foods (SA Production/Warehouse) Enterprise Agreement 2014 was officially recognised.

The Fair Work Commission's decision to approve the enterprise agreement was based on its finding that the application process was procedurally fair and that the agreement met the requirements of the Fair Work Act 2009. The Commission dismissed the opposition raised by the AMWU and recognised the agreement as binding for the relevant employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established