Sapphire Feedlot Pty Ltd

[2024] FWC 2741

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.319 - Application for an order relating to instruments covering new employer and non-transferring employees

Sapphire Feedlot Pty Ltd

(AG2024/3726)

SMITHFIELD CATTLE COMPANY ENTERPRISE AGREEMENT 2023

Agricultural Industry

DEPUTY PRESIDENT BOYCE

SYDNEY, 2 OCTOBER 2024

S.319 - Application for an order relating to instruments covering new employer and non-transferring employees – order made

Sapphire Feedlot Pty Ltd (Applicant) has made an application pursuant to s.319 of the Fair Work Act 2009 (Act) for an order that the Smithfield Cattle Company Enterprise Agreement 2023 (Agreement / Transferrable Instrument) cover non-transferring employees of the Applicant, who perform or who are likely to perform transferring work for the Applicant.

The nominal expiry date of the Agreement is 18 January 2028.

The evidence before me identifies that by 16 October 2024, the Applicant expects to enter into a transfer arrangement with Smithfield Feedlot Pty Ltd for the transfer of its employees operating in the pastoral industry (Transfer Arrangement). Pursuant to the Transfer Arrangement, relevant employees of Smithfield Feedlot Pty Ltd who accept an offer of employment with the Applicant will be Transferring Employees from Smithfield Feedlot Pty Ltd (old employer) to the Applicant (new employer). After 16 October 2024, subject to relevant completion of the Transfer Arrangement, the Applicant will from time to time employ Non-Transferring Employees to fill positions vacated by Transferring Employees and/or in the ordinary course of business. The Applicant seeks an order that Non-Transferring Employees employed by the Applicant be covered by the Agreement.

I have taken into account the factors set out under s.319 (3) of the Act. I note that as at the date of its Application, the Applicant does not employ any Non-Transferring employees. However, the evidence highlights that the terms and conditions of employment of Non-Transferring employees will not suffer any disadvantaged by the Order sought being made (I.e. comparing the terms of the Agreement to those under the otherwise applicable modern award). Further, the evidence discloses that the Order would improve business synergy (in terms of the application of one industrial instrument to all relevant employees at the workplace), not result in economic disadvantage to the Applicant, and not result in productivity being negatively impacted upon at the Applicant’s workplace. I also find that the making the Order would not be contrary to the public interest.

I am satisfied that the Applicant’s application, when considered against the matters set out in s.319(3) of the Act, support the making of the Order sought.

An Order, in the terms applied for by the Applicant, will be issued contemporaneously with this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Fair Work Commission was asked to consider an application by Sapphire Feedlot Pty Ltd for an order under section 319 of the Fair Work Act 2009. The applicant sought an order that non-transferring employees of the company be covered by the Smithfield Cattle Company Enterprise Agreement 2023. This application arose in the context of a proposed transfer arrangement with Smithfield Feedlot Pty Ltd, which would see certain employees of the latter transferring to Sapphire Feedlot Pty Ltd. The applicant anticipated employing additional staff to fill positions left vacant by the transferring employees, and these new hires were to be designated as non-transferring employees.

The legal issues before the Commission centred on whether the proposed order would be appropriate under the Act. Specifically, the Commission had to consider whether the order would disadvantage the non-transferring employees, negatively impact the applicant’s business, or be contrary to the public interest. The Commission also needed to determine if the order would promote business synergy and not result in economic disadvantage to the applicant.

In making its decision, the Commission considered the factors outlined in section 319(3) of the Act. The Commission found that the non-transferring employees would not be disadvantaged by the proposed order, as the terms and conditions of employment under the Agreement were comparable to those under the applicable modern award. Furthermore, the Commission determined that the order would enhance business synergy by applying a single industrial instrument to all relevant employees at the workplace. The Commission also found that the order would not result in economic disadvantage to the applicant or negatively impact productivity. Additionally, the Commission concluded that making the order would not be contrary to the public interest. Based on these findings, the Commission was satisfied that the applicant's application supported the making of the sought order.

The Commission issued an order in the terms applied for by the applicant. This decision will allow the non-transferring employees of Sapphire Feedlot Pty Ltd to be covered by the Smithfield Cattle Company Enterprise Agreement 2023, facilitating a smooth transition and maintaining consistency in the terms and conditions of employment for all relevant employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established