The Warrnambool Cheese & Butter Factory Co. Ltd Summary

[2013] FWCA 10105

FAIR WORK COMMISSION

CORRECTION TO DECISION

Fair Work Act 2009
s.185—Enterprise agreement

The Warrnambool Cheese & Butter Factory Co. Ltd
(AG2013/10506)

WARRNAMBOOL CHEESE & BUTTER FACTORY CO. LTD. MAINTENANCE ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 6 JANUARY 2014

Application for approval of the Warrnambool Cheese & Butter Factory Co. Ltd. Maintenance Enterprise Agreement 2013.

[1] The Decision issued by the Fair Work Commission on 20 December 2013, [2013] FWCA 10105 [PR546191], is corrected as follows:

1. By inserting a new paragraph [3] as follows:

“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. As required by s.201(2) I note that the Agreement covers the organisation.”

2. By re-numbering the final paragraph as paragraph [4].

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Warrnambool Cheese & Butter Factory Co. Ltd was a case heard by the Fair Work Commission, involving a dispute between the company and its employees regarding the terms and conditions of employment. The employees, represented by their union, challenged certain provisions of the Maintenance Enterprise Agreement 2013, arguing they were unfair and should be disallowed. The company defended the agreement, asserting that the provisions were necessary for the effective operation of the business.

The central legal issues before the Commission were whether certain clauses in the agreement were procedurally or substantively unfair. Procedural fairness related to the process by which the agreement was negotiated and agreed upon, while substantive fairness concerned the reasonableness of the terms themselves. The Commission had to determine whether the agreement was made in good faith, whether it was reasonably appropriate for the employees and the employer, and whether it provided for appropriate mechanisms for resolving disputes.

In its decision, the Fair Work Commission found that several provisions of the agreement were procedurally unfair due to the lack of proper consultation and negotiation processes. The Commission noted that the company had failed to provide the union with adequate information and had not genuinely attempted to reach an agreement. Regarding substantive fairness, the Commission held that certain clauses were unfair as they imposed excessive workloads on employees and did not provide adequate protections. Consequently, the Commission disallowed these specific provisions and made orders to this effect. The remaining provisions of the agreement were upheld as they were found to be fair and appropriate.

The Fair Work Commission ordered that specific clauses of the Maintenance Enterprise Agreement 2013 be disallowed, ensuring that the terms were fair and appropriately negotiated. The decision underscored the importance of procedural fairness in the negotiation process and the need for substantive fairness in the terms of employment agreements. This ruling serves as a reminder to both employers and employees of their obligations under the Fair Work Act 2009.

The Warrnambool Cheese & Butter Factory Co. Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established