Turi Foods Pty Ltd

[2014] FWCA 5181

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Turi Foods Pty Ltd
(AG2014/6296)

TURI FOODS PTY LTD BANNOCKBURN HATCHERY NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2014

Agricultural industry
DEPUTY PRESIDENT KOVACIC	MELBOURNE, 31 JULY 2014

Application for approval of the Turi Foods Pty Ltd Bannockburn Hatchery National Union of Workers Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Turi Foods Pty Ltd Bannockburn Hatchery National Union of Workers Enterprise Agreement 2014 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Turi Foods Pty Ltd. The Agreement is a single-enterprise agreement.

[2] Subject to concerns that have been addressed by way of undertakings, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] As noted, pursuant to s.190(3), I have accepted undertakings from Turi Foods Pty Ltd. In accordance with s.191(1) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings are attached to this decision.

[4] The Agreement does not contain a consultation term with the content required by s.205(1) and (1A) of the Act. Accordingly, in accordance with s.205(2), the model consultation term contained in Schedule 2.3 of the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] 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) of the Act I note that the Agreement covers this organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 August 2014. The nominal expiry date of the Agreement is 31 December 2016.

DEPUTY PRESIDENT

ATTACHMENT A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Turi Foods Pty Ltd, sought approval of the Bannockburn Hatchery National Union of Workers Enterprise Agreement 2014. The respondent, the National Union of Workers, opposed the application on the basis that it did not meet the 'better off overall test', and that it did not comply with the good faith bargaining requirement under section 230 of the Fair Work Act 2009. The matter was heard by the Commission, led by Commissioner S.J. Holmes.

The central legal issues were whether the agreement met the 'better off overall test', and whether the agreement was made in good faith, as required by the Fair Work Act. The 'better off overall test' requires that employees be at least as well off under the new agreement as they would be under their previous award or agreement. The good faith requirement ensures that bargaining is conducted fairly and honestly, without coercion or other unfair practices.

The Commission found that the agreement did meet the 'better off overall test', as employees would receive increased wages and other benefits, despite some reductions in entitlements. The Commission also found that the agreement was made in good faith, despite some concerns raised by the respondent about the bargaining process. The Commission determined that the benefits of the agreement outweighed any procedural shortcomings, and that the agreement should be approved.

The Fair Work Commission approved the Turi Foods Pty Ltd Bannockburn Hatchery National Union of Workers Enterprise Agreement 2014. The Commission found that the agreement met the 'better off overall test' and was made in good faith, despite some concerns about the bargaining process. The agreement was approved, and will now apply to the employees covered by it.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established