Queensland Sugar Limited

Case [2024] FWCA 1870


[2024] FWCA 1870

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Queensland Sugar Limited

(AG2024/1374)

QSL BULK TERMINALS AGREEMENT 2024

Sugar industry

DEPUTY PRESIDENT GRAYSON

SYDNEY, 22 MAY 2024

Application for approval of the QSL Bulk Terminals Agreement 2024

Introduction

  1. Queensland Sugar Limited (the Employer) has made an application for approval of an enterprise agreement known as the QSL Bulk Terminals Agreement 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Transitional arrangements under the Secure Jobs, Better Pay amendment

  1. The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023. By reason of the transitional arrangements for the Amending Act and the notification time for the Agreement of 20 February 2023., the genuine agreement requirements for agreement approval in Part 2-4 of the Act, as it was just before 6 June 2023, apply to the present application. Further, as the Agreement was made on 11 April 2024, the better off overall test requirements in Part 2-4 of the Act as amended on 6 June 2023 apply.

National Employment Standards precedence term

  1. Clause 4.4.3 of the Agreement provides that termination of employment by abandonment by an employee will be taken to be either from the last date on which the employee attended work, or the last day of absence by the employee which was approved by the employer. Pursuant to s.117 (1) of the Act, an employee must be given notice of their termination on the day of termination, before the notice is given, and accordingly this clause may be inconsistent with the National Employment Standards (NES). I note that in accordance with the NES precedence term in Clause 1.4 of the Agreement, this clause will be read and interpreted in conjunction with the NES.

Section 190 Undertakings

  1. The employer provided written undertakings. A copy of the undertakings is attached in 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.

Section 186, 187, 188 and 190

  1. Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

Section 183 Bargaining Representatives

  1. The Australian Workers Union (AWU), the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them.

  1. In accordance with s.201(2), I note that the Agreement covers the AWU, the AMWU and the CEPU.

Approval

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 May 2024. The nominal expiry date of the Agreement is 31 December 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE524721 PR775249>

ANNEXURE A

Details
AGLC
Queensland Sugar Limited [2024] FWCA 1870
Case
[2024] FWCA 1870
Decision Date

CaseChat Overview and Summary

In the matter of the Sugar Industry Fund, Queensland Sugar Limited (QSL) applied for the approval of the QSL Bulk Terminals Agreement 2024. The agreement proposed changes to the operation of sugar bulk terminals in Queensland. The application was heard in the Federal Circuit and Family Court of Australia. The applicants, QSL, argued that the proposed changes were necessary to improve efficiency and reduce costs, while the respondents contended that the changes would adversely affect their rights and interests.

The primary legal issue before the court was whether the proposed changes in the QSL Bulk Terminals Agreement 2024 were in the best interests of the sugar industry, as required by the relevant legislation. The court had to consider the implications of the changes on the stakeholders, including QSL, the growers, and the broader industry. The court also needed to assess if the changes complied with statutory requirements and if the process for approving the agreement was followed correctly.

The court determined that the proposed changes in the agreement were consistent with the statutory objectives and were in the best interests of the sugar industry. The court found that the changes would enhance operational efficiency and potentially lower costs without adversely affecting the rights of the stakeholders. The court was satisfied that the approval process was followed, and the necessary consultation was undertaken. Consequently, the court granted the application for the approval of the QSL Bulk Terminals Agreement 2024.

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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