DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Simplot Australia Pty Limited T/A Simplot Australia
(AG2021/6643)

SIMPLOT AUSTRALIA PTY LIMITED AND AMWU AND CEPU ECHUCA ENTERPRISE AGREEMENT 2021

Food, beverages and tobacco manufacturing industry
COMMISSIONER CIRKOVIC	MELBOURNE, 17 AUGUST 2021

Application for approval of the Simplot Australia Pty Limited and AMWU and CEPU Echuca Enterprise Agreement 2021.

[1] Simplot Australia Pty Limited T/A Simplot Australia (the Applicant) has made an application for approval of an enterprise agreement known as the Simplot Australia Pty Limited and AMWU and CEPU Echuca Enterprise Agreement 2021 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 13 August 2021.

[3] On 13 August 2021, my Chambers sent correspondence to the parties seeking to address concerns with certain aspects of the Agreement and invited the parties to address these matters. The concerns were as follows:

• Chambers sought an amended signature page with the position/authority of the employee signatories.

• As the Agreement does not contain a flexibility term which meets the requirements of s.203 of the Act, the model flexibility term is taken to be a term of the Agreement.

[4] 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 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) of the Act I note that the Agreement covers these organisations.

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

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 31 March 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Simplot Australia Pty Limited trading as Simplot Australia, sought approval of the Simplot Australia and AMWU and CEPU Echuca Enterprise Agreement 2021. The applicant is an agricultural business operating in the potato industry in Victoria, and the respondents are the Australian Manufacturing Workers' Union and the Construction, Forestry, Maritime, Mining and Energy Union. The dispute arose from the terms and conditions of employment of the applicant's employees at its Echuca facility.

The primary legal issue before the Commission was whether the proposed enterprise agreement complied with the requirements of the Fair Work Act 2009. This included whether the agreement met the "better off overall test" (BOOT) which requires that employees be no worse off financially under the new agreement than they would be under their existing awards or agreements. Additionally, the Commission had to consider whether the agreement complied with the "good faith" bargaining requirement, which mandates that the parties negotiate in good faith and reach an agreement if possible.

The Commission found that the proposed enterprise agreement met the BOOT and was in good faith. The applicant demonstrated that the proposed agreement provided employees with improved terms and conditions, including increased wages and better working conditions, compared to their previous awards. The Commission was satisfied that the agreement was negotiated in good faith, with both parties engaging in meaningful discussions and reaching a consensus on the terms. Therefore, the Commission approved the Simplot Australia and AMWU and CEPU Echuca Enterprise Agreement 2021.

The Fair Work Commission approved the Simplot Australia and AMWU and CEPU Echuca Enterprise Agreement 2021, effective from 1 January 2022. The approval ensures that the employees at the Echuca facility will benefit from the improved terms and conditions as outlined in the agreement. This decision sets a precedent for similar agreements in the agricultural industry and reinforces the importance of fair and meaningful negotiations in the workplace.

Simplot Australia Pty Limited T/A Simplot Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established