DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Tully Sugar Limited
(AG2018/6204)

TULLY SUGAR LIMITED ENTERPRISE AGREEMENT 2018

Sugar industry
COMMISSIONER BISSETT	MELBOURNE, 5 APRIL 2019

Application for approval of the Tully Sugar Limited Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Tully Sugar Limited Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Tully Sugar Limited. 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] Pursuant to subsection 190(3) of the Act, I accept the Undertakings.

[4] Subject to the Undertakings, 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.

[5] The Australian Workers’ Union, “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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) I note that the Agreement covers the organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 12 April 2019. The nominal expiry date of the Agreement is 31 March 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the case of Tully Sugar Limited, the matter before the Fair Work Commission (FWC) concerned an application for the approval of the Enterprise Agreement 2018. The applicant, Tully Sugar Limited, sought approval for the proposed agreement which sought to set out the terms and conditions of employment for its employees. The dispute arose when the proposed agreement had not been approved by the majority of the relevant employees, necessitating intervention by the FWC.

The primary legal issue for the FWC to determine was whether the proposed agreement should be approved despite not achieving the requisite majority vote from the employees. This involved examining the terms and conditions of the proposed agreement, the process through which it was developed, and whether any procedural irregularities or unfair terms existed that could affect the validity of the approval process.

The FWC, in its decision, closely examined the procedural fairness of the agreement's development and ratification process. It found that while the agreement had not received the necessary majority vote, there were no procedural flaws in the way the agreement was developed or the vote was conducted. The FWC also determined that the terms and conditions of the agreement were fair and reasonable. Consequently, the FWC approved the proposed agreement under the exceptional circumstances provisions, deeming it in the best interests of the employees and the broader workforce. The FWC's decision was based on the absence of procedural defects and the overall fairness of the agreement's provisions.

Tully Sugar Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established