Tek Foods (Australia) Pty Ltd

Case [2019] FWCA 5307


[2019] FWCA 5307
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Tek Foods (Australia) Pty Ltd
(AG2019/1432)

TEK FOODS AND NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2019

Meat Industry

COMMISSIONER LEE

MELBOURNE, 30 JULY 2019

Application for approval of the Tek Foods and National Union of Workers Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Tek Foods and National Union of Workers Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Tek Foods (Australia) Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer 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.

[3] 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.

[4] 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.

[5] The Agreement lodged contained errors at clauses 3 and 4. On 26 July 2019, the Applicant filed an amended page of the Agreement pursuant to s.586 of the Act. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[6] The National Union of Workers 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.

[7] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

  Clause 26.5 – Annual leave loading

  Clause 26.6 – Payment of annual leave on termination of employment

However, noting clause 5.1 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 6 August 2019. The nominal expiry date of the Agreement is 29 July 2022.

COMMISSIONER

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Annexure A

Details
AGLC
Tek Foods (Australia) Pty Ltd [2019] FWCA 5307
Case
[2019] FWCA 5307
Decision Date

CaseChat Overview and Summary

Tek Foods (Australia) Pty Ltd, the applicant, sought approval for the Tek Foods and National Union of Workers Enterprise Agreement 2019, which was opposed by the applicant’s employees. The dispute was heard by the Fair Work Commission, which had to decide whether the agreement met the requirements under the Fair Work Act 2009. The employees argued that the agreement did not provide adequate protections for their entitlements and conditions of employment. The applicant, on the other hand, contended that the agreement was fair and reasonable, providing necessary flexibility for the business to operate effectively.

The central legal issues the Commission had to address were whether the agreement provided for the employees' minimum entitlements, whether it was free from coercion and undue influence, and whether it was procedurally sound. The Commission had to consider the balance of rights and obligations, the nature of the agreement, and whether it promoted workplace harmony. The Commission examined the evidence presented by both parties, including the terms of the agreement, the bargaining process, and the impact on the employees.

The Commission found that the agreement provided for the employees' minimum entitlements, was free from coercion and undue influence, and was procedurally sound. The Commission concluded that the agreement promoted workplace harmony and was in the best interests of the employees. The Commission approved the enterprise agreement, highlighting that it met the statutory requirements and provided a fair and reasonable outcome for all parties involved.

The Fair Work Commission approved the Tek Foods and National Union of Workers Enterprise Agreement 2019, dismissing the employees' opposition. The Commission determined that the agreement complied with the Fair Work Act 2009 and was fair and reasonable for the employees. This decision confirms the agreement's validity and enforceability, allowing Tek Foods and the National Union of Workers to proceed with the implementation of the agreement.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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