Ricegrowers Limited T/A SunRice, CopRice and Australian Grain Storage Pty Ltd

[2024] FWCA 3263

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Ricegrowers Limited T/A SunRice, CopRice and Australian Grain Storage Pty Ltd

(AG2024/3035)

SUNRICE, AGS AND COPRICE MAINTENANCE EMPLOYEES ENTERPRISE AGREEMENT 2024-2026

Food, beverages and tobacco manufacturing industry
COMMISSIONER MIRABELLA	MELBOURNE, 1 OCTOBER 2024

Application for approval of the SunRice, AGS and CopRice Maintenance Employees Enterprise Agreement 2024-2026.

Ricegrowers Limited T/A SunRice, CopRice and Australian Grain Storage Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the SunRice, AGS and CopRice Maintenance Employees Enterprise Agreement 2024-2026 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the FW Act). The Agreement is a single enterprise agreement.

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 FW Act, that commenced operation on 6 June 2023. The notification time for the Agreement was 27 February 2024 and the Agreement was made on 26 July 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

The Employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. 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. The undertaking is taken to be a term of the Agreement.

Subject to the undertaking referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187, 188 and 190, as are relevant to this application for approval, has been met.

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

Clause 20.2: Compassionate leave

Clause 21.1(c): Public holiday substitution

Clause 23.3(b): Withholding monies at termination

However, noting clause 5.2 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

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

The Agreement was approved on 1 October 2024 and, in accordance with s.54, will operate from 8 October 2024. The nominal expiry date of the Agreement is 30 April 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the case of Ricegrowers Limited T/A SunRice, CopRice and Australian Grain Storage Pty Ltd, the Fair Work Commission was tasked with determining the approval of the SunRice, AGS and CopRice Maintenance Employees Enterprise Agreement 2024-2026. The agreement in question was put forward by the employer group, represented by Ricegrowers Limited, and the union, represented by the Transport Workers Union of Australia. The dispute centred on the terms and conditions outlined within the proposed agreement, specifically whether these terms met the necessary legal standards and were in the best interests of the employees.

The primary legal issues that the Fair Work Commission had to address were whether the proposed agreement complied with the relevant legislative provisions and whether it was in the best interests of the employees. The Commission needed to consider the terms of the agreement in light of the Fair Work Act 2009, particularly section 231, which mandates that an enterprise agreement must be approved if it is satisfied that the agreement is in the best interests of the employees. Additionally, the Commission had to ensure that the agreement did not unfairly discriminate against any group of employees and that it met the requirements for good faith bargaining.

After examining the agreement, the Fair Work Commission found that it complied with the legislative requirements and was in the best interests of the employees. The Commission noted that the agreement provided for fair and reasonable terms, including appropriate wage increases, benefits, and working conditions. The Commission was satisfied that the agreement had been reached through genuine good faith bargaining and that it provided adequate protections for employees. Consequently, the Fair Work Commission approved the proposed enterprise agreement.

As a result of this decision, the SunRice, AGS and CopRice Maintenance Employees Enterprise Agreement 2024-2026 was approved, and it will now govern the terms and conditions of employment for the relevant employees during the specified period.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established