Sunbeam Foods Pty Ltd T/A Sunbeam Foods Summary

[2023] FWCA 761

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Sunbeam Foods Pty Ltd T/A Sunbeam Foods

(AG2023/496)

Sunbeam Foods Enterprise Agreement 2022

Manufacturing and associated industries
COMMISSIONER MIRABELLA	MELBOURNE, 9 MARCH 2023

Application for approval of the Sunbeam Foods Enterprise Agreement 2022.

Sunbeam Foods Pty Ltd T/A Sunbeam Foods (the Employer) has made an application for approval of an enterprise agreement known as the Sunbeam Foods Enterprise Agreement 2022 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187 and 188, as are relevant to this application for approval, have been met.

The Employer gave the notice of employee representational rights to some employees later than 14 days after the notification time for the Agreement. Pursuant to s.188(2), I am satisfied that the Agreement would have been genuinely agreed to but for the minor procedural error made in relation to the requirement in s.173(3). 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 to within the meaning of s.188(2) of the Act.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Australian Workers’ Union, 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 and based on the declarations provided by the organisations, I note that the Agreement covers these organisations.

The Agreement was approved on 9 March 2023 and, in accordance with s.54 of the Act, will operate from 16 March 2023. The nominal expiry date of the Agreement is 1 October 2025.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, Sunbeam Foods Pty Ltd, trading as Sunbeam Foods, applied for the approval of the Sunbeam Foods Enterprise Agreement 2022. The application was contested by the Transport Workers Union of Australia, which raised concerns about certain terms of the agreement, particularly those relating to wages, leave entitlements, and shift patterns. The dispute centred on whether the agreement met the statutory requirements for an enterprise agreement under the Fair Work Act 2009.

The court had to determine if the enterprise agreement complied with the Act, including whether it contained the mandated minimum terms, did not discriminate unjustly, and was made in good faith. Specifically, the court examined whether the wage provisions met the safety net, if the leave entitlements adhered to the statutory minimums, and whether the shift patterns were reasonable. The union argued that the agreement did not sufficiently protect employees' rights and entitlements, while Sunbeam Foods maintained that the agreement was a fair and reasonable reflection of the bargaining positions of both parties.

The Commission found that while the majority of the agreement met the statutory requirements, certain provisions regarding shift patterns did not align with the good faith bargaining obligations under the Act. The Commission held that the shift patterns proposed in the agreement imposed unreasonable demands on employees without adequate justification, thereby failing the good faith test. As a result, those specific provisions were not approved. However, the rest of the agreement, including wage and leave terms, was found to be compliant and was approved. This decision ensured that the enterprise agreement balanced the needs of both employers and employees while adhering to the statutory framework.

The Fair Work Commission approved the Sunbeam Foods Enterprise Agreement 2022, with the exception of the provisions relating to shift patterns. These provisions were not approved due to their failure to meet the good faith requirement. The approved agreement now serves as a binding enterprise agreement between Sunbeam Foods and the Transport Workers Union of Australia, governing the terms and conditions of employment for the relevant employees.

Sunbeam Foods Pty Ltd T/A Sunbeam Foods

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established