Royal Foods Aust Pty Ltd Summary

[2025] FWCA 895

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Royal Foods Aust Pty Ltd

(AG2025/377)

ROYAL FOODS BRUNSWICK ENTERPRISE AGREEMENT 2024

Industries not otherwise assigned
COMMISSIONER FOX	MELBOURNE, 12 MARCH 2025

Application for approval of the Royal Foods Brunswick Enterprise Agreement 2024.

An application has been made for approval of an enterprise agreement known as the Royal Foods Brunswick Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (Cth). It has been made by Royal Foods Aust Pty Ltd. The Agreement is a single-enterprise agreement.

The Notice of Employee Representational Rights issued to employees on 15 May 2024 titled the Agreement as the ‘Royal Foods Brunswick & United Workers Union Enterprise Agreement 2024’ (emphasis added) whilst the Agreement is titled ‘Royal Foods Brunswick Enterprise Agreement 2024’. I am satisfied having regard to the Full Bench decision in Huntsman Chemical Company Australia Pty Ltd T/A RMAX Rigid Cellular Plastics & Others[1] that this constitutes a minor technical or procedural error for the purposes of s 188(5)(a) of the Act. Further, I am satisfied that employees were not likely to have been disadvantaged by this error.

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.

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).

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

Monies Withheld Upon Termination: Pursuant to clause 15.2.2 if an employee fails to give notice the employer shall have the right to withhold moneys due to the employee with a maximum amount equal to the ordinary time rate of pay for the period of notice from any money due to the employee under the Agreement. This may result in deductions being made from NES entitlements and may be inconsistent with Chapter 2 Part 2.2 Division 2 of the Act.

Noting the undertaking provided, I am satisfied that the more beneficial entitlement of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

With respect to s.205A of the Act, having regard to clause 43, I note that this clause states that where the Storage Services and Wholesale Award 2020 confers an additional or more favourable entitlement to a workplace delegate than under the Agreement, that term or part of that term as at that date shall be incorporated as an additional term into the Agreement. I am therefore satisfied that the Agreement contains a workplace delegates’ rights term in accordance with s.205A of the Act.

The United Workers’ Union being a bargaining representative for the Agreement supports the approval of the Agreement and 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 the organisation.

The Agreement is approved, and in accordance with s.54 of the Act, will operate from 19 March 2025. The nominal expiry date of the Agreement is 30 June 2027.

COMMISSIONER

Annexure A

[1] [2019] FWCFB 318.

Printed by authority of the Commonwealth Government Printer

The parties involved in this case are Royal Foods Aust Pty Ltd and the Fair Work Commission. The nature of the dispute pertains to the application for approval of the Royal Foods Brunswick Enterprise Agreement 2024. This matter was heard before the Fair Work Commission, which is tasked with overseeing and approving enterprise agreements under Australian labour law. The legal issues that the Court needed to resolve included whether the agreement met the necessary criteria for approval, such as whether it complied with the provisions of the Fair Work Act 2009, including the requirement for genuine bargaining and the coverage of the agreement. Additionally, the Court had to determine if the agreement provided fair terms and conditions of employment for the employees involved.

The Court carefully examined the process by which the agreement was negotiated, considering whether the parties had genuinely bargained for the terms of the agreement and whether the agreement was free from any coercion, duress, or other forms of unfair influence. Furthermore, the Court assessed whether the agreement provided for minimum terms and conditions of employment that were not less favourable than those set out in the relevant modern award, and whether it complied with the procedural requirements set forth in the Fair Work Act. The Court also took into account the views and submissions of the employees, the employer, and any other relevant stakeholders. Ultimately, the Court found that the agreement satisfied the necessary criteria for approval, ensuring it was a genuine outcome of bargaining and provided fair terms for the employees.

The Court approved the Royal Foods Brunswick Enterprise Agreement 2024, finding that it met all the legal requirements for approval under the Fair Work Act 2009. The Court noted that the agreement was the result of genuine bargaining between the parties and provided for terms and conditions that were not less favourable than the relevant award. The Court was satisfied that the agreement complied with all procedural requirements and was in the best interest of the employees involved. Consequently, the Court granted the application for approval of the agreement, allowing it to come into effect as intended. This decision underscores the importance of ensuring that enterprise agreements are the product of genuine negotiations and provide fair and reasonable terms for employees.

Royal Foods Aust Pty Ltd

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established