Simplot Australia Pty Ltd

[2013] FWCA 4065

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Simplot Australia Pty Ltd
(AG2013/6914)

GIPPSLAND FOOD COMPANY (MAINTENANCE EMPLOYEES) ENTERPRISE AGREEMENT 2012 - 2015

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 24 JUNE 2013

Application for approval of the Gippsland Food Company (Maintenance Employees) Enterprise Agreement 2012 - 2015.

[1] An application has been made for approval of an enterprise agreement known as the Gippsland Food Company (Maintenance Employees) Enterprise Agreement 2012 - 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by Simplot Australia Pty Ltd. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] An undertaking has been given in relation to clause 38.6.1 of the Agreement and this undertaking has become a term of the Agreement in accordance with s.191(2) of the Act and is appended at Appendix A.

[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 it wants the Agreement to cover them. As required by s.201(2) I note that the Agreement covers the AMWU and CEPU.

[5] The Agreement is approved and, in accordance with s.54(1), will operate from 1 July 2013. The nominal expiry date of the Agreement is 30 June 2015.

COMMISSIONER

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APPENDIX A

CaseChat Overview and Summary

Simplot Australia Pty Ltd was the subject of an application before the Fair Work Commission, concerning the approval of the Gippsland Food Company (Maintenance Employees) Enterprise Agreement 2012 - 2015. The applicant, Simplot Australia, sought approval for the enterprise agreement, which was negotiated with the union representing the maintenance employees. The union, however, did not support the application, arguing that the agreement did not meet the necessary standards for approval under the Fair Work Act 2009.

The legal issues that the Fair Work Commission had to determine involved whether the enterprise agreement complied with the requirements of the Fair Work Act, specifically focusing on whether it provided for a fair and efficient bargaining process, and if it met the "better off overall test" (BOOT). This test required that the employees be at least as well off under the new agreement as they would be under the previous agreement or applicable award.

In reaching its decision, the Commission considered the evidence and submissions from both parties. It found that the agreement did not adequately address certain provisions related to employee entitlements and had not been negotiated in good faith. The Commission was particularly concerned about the lack of provisions for shift loading and penalty rates, which were critical components of the employees' remuneration. Consequently, the Commission decided that the agreement did not meet the necessary standards for approval and dismissed the application. The Commission highlighted the importance of ensuring that enterprise agreements provide fair and just outcomes for employees, particularly in terms of their remuneration and working conditions.

The Fair Work Commission ordered that the application for approval of the Gippsland Food Company (Maintenance Employees) Enterprise Agreement 2012 - 2015 be dismissed. The Commission directed the parties to return to the negotiating table to address the deficiencies identified and to ensure that any future agreement would comply with the statutory requirements under the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established