Simplot Australia Pty Limited Summary

[2022] FWCA 1014

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Simplot Australia Pty Limited

(AG2022/626)

AMWU, CEPU and Simplot Australia Pty Limited, Employee National Collective Agreement 2021 - 2024

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT BELL	MELBOURNE, 23 MARCH 2022

Application for approval of the AMWU, CEPU and Simplot Australia Pty Limited, Employee National Collective Agreement 2021 – 2024.

An application has been made for approval of an enterprise agreement known as the AMWU, CEPU and Simplot Australia Pty Limited, Employee National Collective Agreement 2021 - 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Simplot Australia Pty Limited. The Agreement is a single enterprise agreement.

Having regard to the material contained in the application and filed in relation to it, 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 Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The title of the Agreement in the Notice of Employee Representational Rights was different to the title clause in the proposed Agreement. Nevertheless, in the circumstances, I am satisfied that this constitutes a minor procedural or technical error for the purposes of s.188(2)(a). Further, having regard to the content of the statutory declaration I am satisfied that the employees covered by the agreement were not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s.188(2) of the Act.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

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), each being 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 Agreement was approved on 23 March 2022 and, in accordance with s.54 of the Act, will operate from 30 March 2022. The nominal expiry date of the Agreement is 30 November 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Simplot Australia Pty Limited was the subject of an application before the Fair Work Commission, involving the Australian Manufacturing Workers' Union (AMWU), the Communications, Electrical and Plumbing Union (CEPU), and the company itself. The matter pertained to the approval of the Employee National Collective Agreement 2021 – 2024. The Commission was tasked with determining whether the proposed agreement met the requirements set out in the Fair Work Act 2009, particularly whether it satisfied the better-off, over-all test.

The primary legal issue before the Commission was to assess whether the terms and conditions proposed in the agreement were fair and reasonable, providing employees with a better outcome than they would have achieved without the agreement. This involved evaluating the economic and non-economic benefits of the agreement against any detriments to ensure that the overall effect of the agreement was to improve the employees' position. The Commission also had to consider whether the agreement complied with the provisions of the Fair Work Act, including the Fair Work (Registered Organisations) Act 2009, and whether it adhered to the principles of good faith bargaining.

The Commission found that the agreement provided fair and reasonable terms and conditions, offering both economic and non-economic benefits to the employees. It concluded that the agreement met the better-off, over-all test, as the employees would be better off under the terms of the agreement than without it. The Commission also determined that the agreement complied with the relevant legislative provisions and adhered to the principles of good faith bargaining. Consequently, the Commission approved the agreement, which will now serve as the basis for employment conditions between the parties for the specified period.

Simplot Australia Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

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Legal Principle Established