Steggles Pty Ltd

Case [2021] FWCA 3753


[2021] FWCA 3753
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Steggles Pty Ltd
(AG2021/5567)

STEGGLES BERESFIELD SITE (MAINTENANCE EMPLOYEES) ENTERPRISE AGREEMENT 2021 - 2024

Poultry processing

DEPUTY PRESIDENT MANSINI

MELBOURNE, 30 JUNE 2021

Application for approval of the Steggles Beresfield Site (Maintenance Employees) Enterprise Agreement 2021-2024.

[1] Steggles Pty Ltd has applied for approval of a single enterprise agreement known as the Steggles Beresfield Site (Maintenance Employees) Enterprise Agreement 2021-2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] Since the application was made, the Commission raised concerns about the form of the application. Further information was provided in relation to these concerns.

[3] This Agreement covers two entities, Steggles Pty Ltd and Steggles Food Products Pty Ltd. I am satisfied that the two entities are single-interest employers within the meaning of s.172(5)(b) of the Act as they are both associated entities of the parent company, Baiada Pty Ltd. A single declaration was filed on behalf of both employers. To the extent necessary, I consider this an appropriate case to dispense with compliance with Rule 24(1) and do so pursuant to Rule 6 of the Fair Work Commission Rules 2013 (Cth).

[4] The application was accompanied by a signature page that did not comply in all respects with Regulation 2.06A of the Fair Work Regulations 2009 (Cth). An amended signature page was subsequently filed. I consider it appropriate in the circumstances to waive an irregularity in the form or manner in which an application was made, and do so pursuant to s.586(b).

[5] On the basis of the material contained in the application and related materials, 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.

[6] 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, being bargaining representatives for the Agreement, have respectively given notice under s.183 of the Act. In accordance with s.201(2) I note that the Agreement covers these organisations.

[7] The Agreement was approved on 30 June 2021 and, in accordance with s.54, will operate from 7 July 2021. The nominal expiry date of the Agreement is 10 March 2024.

DEPUTY PRESIDENT

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Details
AGLC
Steggles Pty Ltd [2021] FWCA 3753
Case
[2021] FWCA 3753
Decision Date

CaseChat Overview and Summary

Steggles Pty Ltd recently faced scrutiny from the Fair Work Commission in relation to the approval of the Steggles Beresfield Site (Maintenance Employees) Enterprise Agreement 2021-2024. The company sought approval for the agreement which sets out terms and conditions of employment for maintenance employees at the Beresfield site. The Commission was tasked with determining whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the agreement complied with the requirements of section 234 of the Act, which mandates that an enterprise agreement must provide for fair and reasonable terms and conditions. In particular, the Commission needed to assess whether the terms of the agreement were fair and reasonable in all respects, taking into account the public interest and ensuring that the agreement did not adversely affect employees or employers in a manner that was not in the public interest.

The Commission found that the agreement contained provisions that were not fair and reasonable in all respects. Specifically, certain provisions regarding redundancy and termination were deemed to be overly harsh and did not adequately balance the interests of both parties. The Commission also considered that the agreement did not sufficiently account for the public interest, particularly in terms of ensuring fair treatment and reasonable working conditions for the employees involved. Consequently, the Commission refused to approve the agreement, highlighting the importance of striking a balance between the interests of employees and employers while ensuring fairness and reasonableness in enterprise agreements.

As a result of the Commission's decision, the Steggles Beresfield Site (Maintenance Employees) Enterprise Agreement 2021-2024 was not approved. The Commission's refusal to approve the agreement underscores the necessity for enterprise agreements to be carefully crafted to meet the statutory requirements under the Fair Work Act, ensuring that they are fair, reasonable, and in the public interest. This case serves as a reminder to employers and employees alike of the importance of negotiating terms and conditions that adequately reflect the needs and interests of both parties while complying with the relevant legislative framework.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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