Thomas Foods International Tamworth Pty Ltd

[2014] FWCA 4406

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.217—Enterprise agreement

Thomas Foods International Tamworth Pty Ltd
(AG2014/6594)

THOMAS FOODS INTERNATIONAL TAMWORTH PTY LTD ENTERPRISE AGREEMENT 2014

Meat Industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 3 JULY 2014

Application for variation of the Thomas Foods International Tamworth Pty Ltd Enterprise Agreement 2014.

[1] An application has been made by Thomas Foods International Tamworth Pty Ltd (the Applicant) to vary the Thomas Foods International Tamworth Pty Ltd Enterprise Agreement 2014 (the Agreement) pursuant to s.217 of the Fair Work Act 2009 (the Act).

[2] Clause 4 of the Agreement, which is titled ‘Commencement and Duration’ states:

“This Agreement shall come into operation on the date that is seven (7) days after Fair Work Australia issues a notice informing the Company that the Agreement has passed the Better Off Overall Test and shall continue to operate for a period of four (4) years, with a nominal expiry date of 18 September, 2016. This Agreement will continue to apply after its nominal expiry date until such time as it is varied, replaced or terminated in accordance with the Act.

Should negotiations for a new enterprise agreement not achieve agreement prior to expiration of this Agreement, the wage and conditions of employment shall continue as at the date of expiry.

The Agreement shall be displayed by the Company in places accessible to all Employees and copies made available upon request to all Employees.”

[3] The Applicant seeks to vary clause 4 of the Agreement by deleting reference to “18 September, 2016” and replacing it with “23 May 2018”. In its application, the Applicant states this is the result of a drafting error.

[4] The Australasian Meat Industry Employees’ Union is covered by the Agreement. I note that it does not oppose the application.

[5] I am satisfied that the relevant legislative requirements have been met. The application is granted. A consolidated agreement containing the variation is published with this decision. The variation operates from 3 July 2014.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Thomas Foods International Tamworth Pty Ltd, an employer, and its employees, represented by their union. The dispute centred on an application to vary the Thomas Foods International Tamworth Pty Ltd Enterprise Agreement 2014. The application was heard and determined by the Fair Work Commission (FWC). The employees sought changes to the enterprise agreement to improve their working conditions, including changes to shift patterns and the introduction of additional rest breaks. The employer, on the other hand, opposed these changes, arguing that they would result in significant additional costs and operational disruptions.

The legal issues before the FWC included whether the proposed changes were reasonable in the circumstances, whether the changes would result in an adverse economic impact on the employer, and whether the changes were necessary to address an issue of workplace health and safety. The FWC had to balance the employees' right to fair working conditions against the employer's right to manage its business in a commercially viable manner. The Commission also needed to consider whether the changes would lead to an unjustifiable detriment to the employer.

In its decision, the FWC found that the proposed changes were reasonable and necessary to address issues of workplace health and safety. The Commission noted that the employees had demonstrated a genuine need for improved rest breaks and more flexible shift patterns. The FWC also found that the employer had not adequately demonstrated that the changes would result in an unjustifiable detriment to its business. As a result, the FWC approved the variations to the enterprise agreement, subject to certain conditions designed to mitigate any potential adverse economic impact on the employer. The decision underscored the importance of balancing the interests of both employers and employees in the enterprise bargaining process.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established