DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Red Lea Chickens Pty Ltd
(AG2016/828)

RED LEA CHICKENS PTY LTD, BLACKTOWN PLANT AND POULTRY PROCESSING ENTERPRISE AGREEMENT 2016 - 2019

Poultry processing
COMMISSIONER LEE	MELBOURNE, 26 MAY 2016

Application for approval of the Red Lea Chickens Pty Ltd, Blacktown Plant and Poultry Processing Enterprise Agreement 2016 - 2019.

[1] An application has been made for approval of an enterprise agreement known as the Red Lea Chickens Pty Ltd, Blacktown Plant and Poultry Processing Enterprise Agreement 2016 - 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Red Lea Chickens Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant has 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.

[3] 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.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The Australasian Meat Industry Employees 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) 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 2 June 2016. The nominal expiry date of the Agreement is 31 January 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Red Lea Chickens Pty Ltd, an employer, applied for approval of an enterprise agreement with its employees, represented by the United Workers Union. The agreement covered the period from 2016 to 2019. The Fair Work Commission (FWC) was required to determine whether the agreement met the criteria for approval under the Fair Work Act 2009. The FWC had to assess if the agreement provided for fair and reasonable terms and conditions of employment, and whether it complied with procedural requirements such as proper bargaining and employee consultation.

The legal issues before the FWC centred on whether the agreement provided for fair and reasonable terms and conditions of employment, and whether the bargaining and consultation processes were conducted appropriately. The United Workers Union argued that the agreement did not sufficiently provide for fair and reasonable terms, particularly in relation to working hours and leave entitlements. The employer contended that the agreement was fair and reasonable, and that the required procedural steps were followed. The FWC needed to determine if the agreement met the statutory requirements for approval, particularly focusing on the procedural fairness and substantive fairness of the terms.

The FWC found that the agreement met the procedural requirements for approval, as the employer had engaged in genuine and meaningful bargaining with the union. However, the FWC identified issues with the substantive fairness of the agreement, particularly regarding the terms for working hours and leave. The FWC concluded that the agreement did not provide for fair and reasonable terms in these areas, as it did not adequately protect employees’ rights. Consequently, the FWC did not approve the agreement. The FWC made orders for the agreement to be rejected, and it did not come into effect.

Red Lea Chickens Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established