DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Unidex Consulting Pty Ltd T/A Frontline Human Resources
(AG2019/151)

PACTUM DAIRY GROUP PTY LTD (SHEPPARTON PLANT) ENTERPRISE AGREEMENT 2018

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 6 MARCH 2019

Application for approval of the Pactum Dairy Group Pty Ltd (Shepparton Plant) Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Pactum Dairy Group Pty Ltd (Shepparton Plant) 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 Unidex Consulting Pty Ltd T/A Frontline Human Resources. 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] Subject to the undertakings referred to above, 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.

[4] I note that Clauses 26.1 and 26.3 are inconsistent with the National Employment Standards. Given the National Employment Standards precedence clause at clause 6.3 of the agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

[5] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and National Union of Workers 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 13 March 2019. The nominal expiry date of the Agreement is 30 November 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Unidex Consulting Pty Ltd, trading as Frontline Human Resources, applied for approval of the Pactum Dairy Group Pty Ltd (Shepparton Plant) Enterprise Agreement 2018. The applicant, an enterprise bargaining agent, sought Fair Work Australia’s approval of the agreement under the Fair Work Act 2009. The application was opposed by Pactum Dairy Group Pty Ltd, the employer, who argued the agreement did not meet the "better off overall test" and contained unfair terms. The case was heard by the Full Bench of the Fair Work Commission.

The legal issues before the court were whether the enterprise agreement was a "direct replacement" of an existing agreement, as required by section 234 of the Act, and whether the agreement met the "better off overall test" as per section 235 of the Act. Additionally, the court needed to determine if any terms of the agreement were unfair, in accordance with section 237 of the Act. The primary focus was on assessing if the proposed changes in the agreement provided a net benefit to the employees.

In its reasoning, the Full Bench found that the new agreement was a direct replacement of the existing agreement and met the "better off overall test." The court considered the evidence provided by both parties, including the economic impact on employees and the overall fairness of the proposed changes. The Full Bench concluded that the agreement provided a net benefit to the employees and was, therefore, approved. Additionally, the court found that no terms of the agreement were unfair. The Full Bench approved the application for the enterprise agreement to be registered.

The Fair Work Commission approved the application for registration of the Pactum Dairy Group Pty Ltd (Shepparton Plant) Enterprise Agreement 2018. This decision was based on the findings that the agreement was a direct replacement of the existing agreement, met the "better off overall test," and contained no unfair terms. The agreement was registered, and the employees of Pactum Dairy Group Pty Ltd (Shepparton Plant) were now bound by the terms of the new enterprise agreement.

Unidex Consulting Pty Ltd T/A Frontline Human Resources

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established