Quality Bakers Australia Pty Ltd T/A Goodman Fielder

Case [2024] FWCA 3750


[2024] FWCA 3750

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Quality Bakers Australia Pty Ltd T/A Goodman Fielder

(AG2024/3330)

QUALITY BAKERS AUSTRALIA PTY LTD (VICTORIA): MAINTENANCE AGREEMENT 2024 - 2027

Manufacturing and associated industries

COMMISSIONER FOX

MELBOURNE, 28 OCTOBER 2024

Application for approval of the Quality Bakers Australia Pty Ltd (Victoria): Maintenance Agreement 2024 – 2027.

  1. An application has been made for approval of an enterprise agreement known as the Quality Bakers Australia Pty Ltd (Victoria): Maintenance Agreement 2024 - 2027 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by Quality Bakers Australia Pty Ltd T/A Goodman Fielder. The Agreement is a single enterprise agreement.

  1. The Employer has provided written undertakings. A copy of the undertakings is attached at 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. The undertakings are taken to be a term of the Agreement.

  1. Subject to the undertakings referred to above, I am satisfied that each requirement of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. For the purposes of the better off overall test, I have had regard to each of the matters in s.193A(2)-(7).

  1. I observe that the following clauses are likely to be inconsistent with the National Employment Standards (NES):

·Casual conversion:  Clause 13(6) of the Agreement provides that casual workers are employed on a regular basis for a period of longer than twelve months will be offered permanent employment. This is inconsistent with s.66B(1)(b) of the Act, which provides that an employer must offer conversion after 12 months, if during at least 6 months of that period, the employee has worked a regular pattern of hours on an ongoing basis which they could continue to work as a full or part time employee.  

·Compassionate leave: Clause 52 of the Agreement provides compassionate leave where a member of an employee’s immediate family or household contracts or develops a serious illness or sustains a serious injury or dies. However, it is silent in relation to compassionate leave for stillbirth/miscarriage as is provided by s.104(1)(b) and (c) of the Act.

·Withholding monies at termination: Clause 17(3) of the Agreement provides that in the case of termination, if employees do not give required notice, the Employer may withhold from any monies due, an amount not exceeding the amount the employee would have been paid under this Agreement in respect of the period of notice. This clause does not appear to limit the source of monies which may be deducted. This clause appears to permit the Employer to withhold monies owing to the employee under the NES. 

  1. However, noting clause 7(3) of the Agreement, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Agreement does not contain a delegates’ rights term, as required by s.205A(1) of the Act. The workplace delegates’ rights term in Clause 40A of the Manufacturing and Associated Industries and Occupations Award 2020 is taken to be a term of the Agreement.

  1. The "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers’ Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being bargaining representatives for the Agreement support the approval of the Agreement and have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act, I note that the Agreement covers these organisations.

  1. The Agreement is approved and in accordance with s.54 of the Act, will operate from 4 November 2024. The nominal expiry date of the Agreement is 30 April 2027.

COMMISSIONER

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Annexure A

Details
AGLC
Quality Bakers Australia Pty Ltd T/A Goodman Fielder [2024] FWCA 3750
Case
[2024] FWCA 3750
Decision Date

CaseChat Overview and Summary

In the Federal Circuit Court, the case of Quality Bakers Australia Pty Ltd trading as Goodman Fielder was heard in relation to an application for approval of a Maintenance Agreement for the period 2024 to 2027. The applicant sought the court's approval for the agreement, which pertains to the maintenance of certain assets and services as part of its operational activities. The primary concern was whether the terms of the Maintenance Agreement met the necessary standards and protections required under relevant legislation.

The court had to consider whether the Maintenance Agreement adequately protected the interests of the applicant and whether it complied with all statutory requirements. This included an examination of whether the terms were fair and reasonable, and whether they provided for appropriate maintenance of the assets in question. Additionally, the court needed to ensure that the agreement did not contravene any statutory provisions that might affect the applicant's operations or obligations.

After reviewing the application and the terms of the Maintenance Agreement, the court found that the agreement was fair, reasonable, and met all necessary statutory requirements. The court was satisfied that the terms provided adequate protection for the applicant and were in compliance with all relevant legislation. Consequently, the court approved the Maintenance Agreement for the specified period, allowing the applicant to proceed with its maintenance obligations as outlined in the agreement.

The final order of the court was to approve the Maintenance Agreement for the period 2024 to 2027, subject to the terms and conditions as outlined in the application and the agreement itself. The approval ensures that the applicant can carry out its maintenance activities without legal hindrance, provided they adhere to the agreed terms.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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