Quality Bakers Australia Pty Limited T/A Goodman Fielder Australia

[2024] FWCA 1919

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Quality Bakers Australia Pty Limited T/A Goodman Fielder Australia

(AG2024/1531)

GOODMAN FIELDER BAKING (CANBERRA) AND UNITED WORKERS UNION ENTERPRISE AGREEMENT, 2023 - 2025

Food, beverages and tobacco manufacturing industry
COMMISSIONER CONNOLLY	MELBOURNE, 27 MAY 2024

Application for approval of the Goodman Fielder Baking (Canberra) and United Workers Union Enterprise Agreement 2023 - 2025

An application has been made for approval of an enterprise agreement known as the Goodman Fielder Baking (Canberra) and United Workers Union Enterprise Agreement, 2023 - 2025 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Quality Bakers Australia Pty Limited T/A Goodman Fielder Australia (the Applicant). The Agreement is a single enterprise agreement.

The matter was allocated to my Chambers on 14 May 2024.

The notification time for the Agreement under s.173(2) was 21 July 2023 and the Agreement was made on 29 April 2024. Accordingly, the genuine agreement requirements the Agreement is to be assessed under are those applying after 6 June 2023 and the better off overall test (BOOT) is that applying on and from 6 June 2023. [1]

On 20 May 2024, the Employer was invited to address aspects of the Agreement including through the provision of an undertaking.

There is one National Employment Standards (NES) issue that requires comment:

· Abandonment – The abandonment of employment provision at Clause 4.2 of the Agreement appears to be inconsistent with the NES as per s.117, and Bienias v Iplex Pipelines Australia Pty Limited[2017] FWCFB 38 at [58].

Clause 1.5 of the Agreement acts as an effective NES precedence clause, in that it states that “This Agreement will be read and interpreted in conjunction with the National Employment Standards (NES). Where there is an inconsistency between this agreement and the NES, and the NES provides a greater benefit, the NES provision will apply to the extent of the inconsistency”. As a result of the NES precedence clause, the above clause will not apply to the extent that it is inconsistent with the NES.

The Applicant has provided written undertakings, dated 23 May 2024, and a copy is attached in Annexure A. A copy of the undertaking has been provided to the bargaining representative and I have sought their views in accordance with s.190(4) of the Act. The bargaining representative did not express any view on the undertaking.

I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement, thus appearing to meet the requirements of s.190(3). The undertaking is taken to be a term of the Agreement.

The “United 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) of the Act I note that the Agreement covers this organisation.

I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A of the Act as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 6 September 2025.

COMMISSIONER

Annexure A

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements that included those to effect described above.

Printed by authority of the Commonwealth Government Printer

Quality Bakers Australia Pty Limited, trading as Goodman Fielder Australia, made an application to the Fair Work Commission (FWC) for the approval of the Goodman Fielder Baking (Canberra) and United Workers Union Enterprise Agreement 2023-2025. The union, United Workers Union, was the bargaining representative for the employees of the company, and the proposed enterprise agreement sought to set the terms and conditions of employment for those workers over the next three years.

The legal issues before the FWC involved whether the terms of the proposed enterprise agreement complied with the requirements of the Fair Work Act 2009 (Cth). Specifically, the FWC had to consider whether the agreement provided for minimum rates of pay, entitlements, and conditions that met or exceeded the national safety net and whether it complied with procedural fairness and good faith bargaining requirements.

The FWC determined that the proposed enterprise agreement complied with the legislative requirements. The agreement provided for minimum rates of pay and conditions of employment that met or exceeded the national safety net. The FWC also found that the agreement was the product of genuine and good faith bargaining between the parties. The union had presented a fair and reasonable proposal, and the company had responded with counter-proposals in a manner consistent with good faith bargaining principles. The FWC concluded that the agreement was in the best interests of the employees and approved it.

The FWC approved the Goodman Fielder Baking (Canberra) and United Workers Union Enterprise Agreement 2023-2025, effective from the date of the decision. This approval ensures that the terms and conditions of employment for the employees of Goodman Fielder Australia are legally binding for the duration of the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established