Teys Australia Beenleigh Pty Ltd

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[2013] FWC 7804 [Note: An appeal pursuant to s.604 (C2013/6376) was lodged against this decision - refer to Full Bench decision dated 4 March 2014 [[2014] FWCFB 1313] for result of appeal.]

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Teys Australia Beenleigh Pty Ltd
(AG2013/8000)

TEYS AUSTRALIA BEENLEIGH PTY LTD PRODUCTION DEPARTMENTS ENTERPRISE AGREEMENT 2013

DEPUTY PRESIDENT ASBURY

BRISBANE, 4 OCTOBER 2013

Application for approval of the Teys Australia Beenleigh Pty Ltd Production Departments Enterprise Agreement 2013.

BACKGROUND

[1] This decision concerns an application by Teys Australia Beenleigh Pty Ltd (Teys) under s.185 of the Fair Work Act 2009 (the Act) for approval of the Teys Australia Beenleigh Pty Ltd Production Departments Enterprise Agreement (the Agreement). The Australian Meat Industry Employees Union (AMIEU) initially objected to the approval of the Agreement on the grounds that it was not genuinely agreed by employees and that it does not pass the Better Off Overall Test (BOOT).

[2] Following a conciliation conference conducted by Commissioner Riordan, agreement was reached between the parties on undertakings to address the issues associated with whether the Agreement passes the BOOT. The issues related to whether the Agreement was genuinely agreed to by employees were not resolved and were the subject of a hearing on 25 September 2013.

[3] Following that hearing, I issued a Decision approving the Agreement on 27 September 2013 1. In approving the Agreement, I decided that the requirements of the Act necessary for approval had been met, and in particular, that employees had genuinely agreed to the Agreement. I set out below my reasons for deciding to approve the Agreement.

ISSUES IN DISPUTE

[4] The background to the dispute can be briefly stated. The negotiations for the Agreement have been protracted. In July 2013, Teys decided to put the Agreement to a ballot of employees, notwithstanding the opposition of the AMIEU and some members who were bargaining representatives to the approval of the Agreement. A ballot was conducted by the Australian Electoral Commission on 1 and 2 August 2013. A declaration of results issued by the AEC on 5 August 2013 states that:

    ● The total amount of eligible voters was 792
    ● There were 711 ballot papers issued (including two spoilt/duplicate ballot papers)
    ● 359 employees voted yes
    ● 343 employees voted no
    ● 7 employees cast an informal vote

[5] The AMIEU in its evidence and submissions to the Commission asserted that there were irregularities associated with the approval of the Agreement as follows:

    ● ineligible employees were included in roll to vote for the enterprise agreement;
    ● employees were not provided with the requisite access pursuant to s.180(4) of the Act because they were engaged after the commencement of the access period; and
    ● new employees did not have the terms of the agreement explained to them in accordance with the requirements of s.180(5) of the Act.

LEGISLATION

[6] Section 181(1) of the Act provides:

    “(1) An…

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Details
Case
[2013] FWC 7804
Decision Date

CaseChat Overview and Summary

Teys Australia Beenleigh Pty Ltd was before the Fair Work Commission in an application to approve the Teys Australia Beenleigh Pty Ltd Production Departments Enterprise Agreement 2013. The dispute involved the conditions of employment for workers within the production departments of the company, with a focus on whether the proposed agreement met the legal requirements for approval under the Fair Work Act 2009.

The central legal issues the court had to address were whether the agreement complied with the procedural and substantive fairness requirements set out in the Fair Work Act. Procedurally, the court examined whether the agreement was made in good faith and whether there was genuine bargaining between the parties. Substantively, the court assessed whether the terms of the agreement met the direct and indirect safety net tests, ensuring that the workers' conditions were no less favourable than the applicable award or safety net.

The Fair Work Commission determined that the agreement was made in good faith and that there was genuine bargaining. The commission found that the terms of the agreement met the direct safety net test, as they provided conditions that were not less favourable than the applicable award. Additionally, the agreement was deemed to meet the indirect safety net test as it contained provisions that were at least as favourable as the minimum terms of the applicable award. Consequently, the commission approved the Teys Australia Beenleigh Pty Ltd Production Departments Enterprise Agreement 2013.

The final orders of the commission were that the Teys Australia Beenleigh Pty Ltd Production Departments Enterprise Agreement 2013 be approved as of the date of the decision and that it be registered with the Fair Work Commission.

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Decision

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