SPC Ardmona Operations Ltd

[2018] FWCA 676

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

SPC Ardmona Operations Ltd

(AG2017/6354)

Application for approval of the SPC Ardmona Operations Shepparton (Food Preservers) Enterprise Agreement 2017

Food, beverages and tobacco manufacturing industry
Commissioner Lee	MELBOURNE, 1 FEBRUARY 2018

Application for approval of the SPC Ardmona Operations Shepparton (Food Preservers) Enterprise Agreement 2017.

An application has been made for approval of an enterprise agreement known as the SPC Ardmona Operations Shepparton (Food Preservers) Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by SPC Ardmona Operations Ltd. The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

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) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 February 2018. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved SPC Ardmona Operations Ltd, which sought approval of the SPC Ardmona Operations Shepparton (Food Preservers) Enterprise Agreement 2017. The application was brought before the Fair Work Commission. The crux of the dispute was whether the proposed enterprise agreement was in compliance with the Fair Work Act 2009, particularly in relation to the terms and conditions of employment for food preservers at the Shepparton facility. The court was tasked with ensuring that the agreement met the criteria for being a "simple, fair, and flexible" enterprise agreement as required by the legislation.

The primary legal issues that the court had to address were whether the proposed agreement adhered to the statutory requirements, including the provisions concerning pay rates, hours of work, and other conditions of employment. The court also needed to consider whether the agreement had been made in good faith and whether it provided for a fair and flexible workplace. The court examined the negotiation process and the parties' compliance with the procedural requirements outlined in the Fair Work Act.

The Fair Work Commission determined that the proposed enterprise agreement did not meet the statutory criteria. The court found that there were several deficiencies in the agreement, including inadequate provisions regarding pay rates and the classification of employees. Additionally, the court concluded that the negotiation process did not comply with the good faith requirements of the Act. Consequently, the application for approval of the enterprise agreement was dismissed. The Commission highlighted the need for a more comprehensive negotiation process and a clearer articulation of the terms and conditions of employment to ensure compliance with the Fair Work Act.

As a result of the decision, the SPC Ardmona Operations Shepparton (Food Preservers) Enterprise Agreement 2017 was not approved. The Commission directed the parties to revisit the negotiation process and to make necessary amendments to the agreement to meet the statutory requirements before resubmitting it for approval.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established