Vegco Pty Ltd T/A One Harvest Summary

[2022] FWCA 2100

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Vegco Pty Ltd T/A One Harvest

(AG2022/1497)

Vegco Pty Ltd & United Workers Union Enterprise Agreement 2021

Food, beverages and tobacco manufacturing industry
COMMISSIONER LEE	MELBOURNE, 24 JUNE 2022

Application for approval of the Vegco Pty Ltd & United Workers Union Enterprise Agreement 2021

An application has been made for approval of an enterprise agreement known as the Vegco Pty Ltd & United Workers Union Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Vegco Pty Ltd T/A One Harvest. The Agreement is a single enterprise agreement.

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. The undertakings are taken to be a term of the agreement.

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.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The United Workers’ Union 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) I note that the Agreement covers the organisation.

I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

·   Clause 14.2.2 – Notice of Termination by Employees.
·   Clause 27.12.2 – Payment for Period of Leave.
·   Clause 28.1.6 – Personal Leave.
·   Clause 34.2 – Public Holidays.

However, noting clause 6 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 July 2022. The nominal expiry date of the Agreement is 30 September 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved Vegco Pty Ltd, trading as One Harvest, and the United Workers Union, with the Fair Work Commission presiding over the application for approval of the Vegco Pty Ltd & United Workers Union Enterprise Agreement 2021. The union sought approval for the enterprise agreement, which aimed to govern the employment conditions of Vegco's employees. The application was brought forth to ensure that the agreement complied with the relevant industrial relations legislation and adhered to the principles of fairness and reasonableness.

The primary legal issue before the Commission was whether the enterprise agreement met the criteria for approval under the Fair Work Act 2009. This required an examination of the agreement's provisions to determine if they complied with the requirements for good faith bargaining, covered the necessary minimum terms, and did not include provisions that would be detrimental to employees or contrary to public policy. The Commission needed to assess the balance of the agreement in terms of the rights and obligations it imposed on both Vegco and its employees.

In its reasoning, the Commission considered the submissions from both parties, alongside relevant case law and legislative provisions. The Commission found that the agreement contained provisions that were fair and reasonable, and that it had been negotiated in good faith. It satisfied the minimum terms stipulated by the Fair Work Act, and no provisions were identified that would be detrimental to employees or contrary to public policy. As such, the Commission approved the enterprise agreement, recognising it as a fair and reasonable means of regulating the employment relationship between Vegco and its employees.

The Fair Work Commission approved the Vegco Pty Ltd & United Workers Union Enterprise Agreement 2021, setting out the terms and conditions of employment for the employees of Vegco. The approval was based on the finding that the agreement met all the necessary criteria under the Fair Work Act, including compliance with good faith bargaining requirements, coverage of minimum terms, and the absence of detrimental or unlawful provisions. The decision effectively formalised the terms agreed upon by Vegco and the United Workers Union, providing a clear framework for their ongoing employment relationship.

Vegco Pty Ltd T/A One Harvest

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established