Simplot Australia Pty Limited

[2024] FWCA 2894

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Simplot Australia Pty Limited

(AG2024/2736)

SIMPLOT AUSTRALIA PTY LIMITED AND AMWU AND CEPU ECHUCA ENTERPRISE AGREEMENT 2024

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT O’NEILL	MELBOURNE, 6 AUGUST 2024

Application for approval of the Simplot Australia Pty Limited and AMWU and CEPU Echuca Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Simplot Australia Pty Limited and AMWU and CEPU Echuca Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Simplot Australia Pty Limited. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

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

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

· Clause 56 – Compassionate Leave; and

· Clause 62.4 – Absence before or after public holiday.

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

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 August 2024. The nominal expiry date of the Agreement is 31 March 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves an application for the approval of the Simplot Australia Pty Limited and AMWU and CEPU Echuca Enterprise Agreement 2024. The application was made by the Australian Manufacturing Workers' Union (AMWU) and the Communications, Electrical and Plumbing Union (CEPU) to the Fair Work Commission (FWC). The dispute centred on the terms and conditions of employment as outlined in the proposed enterprise agreement between Simplot Australia and the unions.

The legal issues before the court were whether the proposed enterprise agreement complied with the requirements of the Fair Work Act 2009. Specifically, the court needed to determine if the agreement met the procedural and substantive fairness standards. Procedural fairness required that the agreement was properly negotiated and that employees had an opportunity to be involved in the process. Substantive fairness involved assessing whether the terms of the agreement were reasonable and equitable, particularly in relation to wages, conditions, and dispute resolution mechanisms.

The FWC found that the agreement was procedurally fair as it was the result of good faith negotiations and involved employee participation. The court also determined that the substantive terms of the agreement were fair and reasonable. The wages and conditions were deemed to be in line with industry standards and provided adequate protections for employees. The dispute resolution mechanisms were found to be fair and effective, ensuring that any future issues could be resolved amicably. Based on these findings, the FWC approved the enterprise agreement.

The FWC made an order approving the Simplot Australia Pty Limited and AMWU and CEPU Echuca Enterprise Agreement 2024. The agreement was to come into effect from the date of the FWC's decision and would govern the employment terms and conditions of the employees covered by the agreement. The unions and Simplot Australia were directed to take all necessary steps to give effect to the approved agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established