Sauer's Bakehouse Pty Ltd Summary

[2014] FWCA 3660

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

Sauer's Bakehouse Pty Ltd
(AG2014/1224)

SAUER'S BAKEHOUSE PTY LTD T/A SAUER'S BAKEHOUSE ENTERPRISE AGREEMENT 2012 - 2014

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 3 JUNE 2014

Application for variation of the Sauer's Bakehouse Pty Ltd t/as Sauer's Bakehouse Enterprise Agreement 2012-2014.

[1] An application has been made for approval of a variation of the Sauer's Bakehouse Pty Ltd t/as Sauer's Bakehouse Enterprise Agreement 2012-2014 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act) by Sauer’s Bakehouse Pty Ltd.

[2] The application seeks to vary the Agreement by inserting a new clause 13A as follows:

“13A Cashing out Personal/carer’s Leave

An employee may cash out personal/carer’s leave under the following circumstances;

(a) paid personal/carer’s leave must not be cashed out if the cashing out would result in the employee’s remaining accrued entitlement to paid personal/carer’s leave being less than 15 days; and

(b) each cashing out of a particular amount of paid personal/carer’s leave must be:

(i) by a separate agreement in writing between the employer and the employee;

(ii) at the employee’s request, which will not be refused other than for genuine operational reasons; and

(c) the employee must be paid at least the full amount that would have been payable to the employee had the employee taken the leave that the employee has forgone.”

[3] I am satisfied that each of the requirements of s.211 as are relevant to this application for approval have been met.

The application is approved and the consolidated version of the Agreement, incorporating the variations, is attached.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Sauer's Bakehouse Pty Ltd, the employer, made an application for a variation of the existing enterprise agreement with its employees, as represented by the relevant union. The dispute centred around the need for amendments to the agreement to reflect changes in the business operations and the broader economic environment, which the employer argued were necessary to ensure the company's viability and competitiveness. The union, while not opposing the need for changes, contested the specifics of the proposed variations, particularly those relating to employee conditions and remuneration.

The central legal issues for the Commission to decide involved the interpretation and application of the relevant provisions of the Fair Work Act 2009. The Commission needed to assess whether the proposed changes were bona fide attempts to improve the business's efficiency and whether they were consistent with the principles of good faith bargaining and the preservation of employee rights. Additionally, the Commission had to consider the balance between the employer's right to manage its business and the employees' rights to fair and equitable treatment.

The Commission carefully examined the evidence presented by both parties and considered the broader economic context. It concluded that the proposed variations were necessary to address the employer's legitimate business needs and were in line with the principles of good faith bargaining. The changes were deemed reasonable and appropriate, taking into account the need to maintain a fair balance between the employer's operational requirements and the employees' rights. The Commission approved the variations, ensuring that the employees would not be worse off overall and that the changes were proportionate to the business needs.

The final orders included the approval of the variations to the enterprise agreement, with specific amendments to employee conditions and remuneration as proposed by the employer. The union's concerns were addressed through certain safeguards and protections, ensuring that the employees' rights were preserved to the greatest extent possible. The decision was made in a manner that recognised the need for flexibility in enterprise agreements to adapt to changing business environments while protecting the interests of the workforce.

Sauer's Bakehouse Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established