Vegco Pty Ltd Summary

[2024] FWCA 4579

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Vegco Pty Ltd

(AG2024/4685)

VEGCO PTY LTD & UNITED WORKERS UNION ENTERPRISE AGREEMENT 2024

Food, beverages and tobacco manufacturing industry
COMMISSIONER ALLISON	MELBOURNE, 20 DECEMBER 2024

Application for approval of the Vegco Pty Ltd & United Workers Union Enterprise Agreement 2024

Vegco Pty Ltd (the Employer) has made an application, pursuant to s.185 of the Fair Work Act 2009 (the Act), for approval of a single enterprise agreement known as the Vegco Pty Ltd & United Workers Union Enterprise Agreement 2024 (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 United Workers’ Union.

The following provisions may be inconsistent with the National Employment Standards (NES):

Clause 14.2.2, relating to deductions on termination, appears inconsistent with NES because it may permit the employer to withhold monies owing to an employee under the NES.

Clause 28.1.8, relating to notice requirements for personal and carer’s leave, may be a more stringent notice requirement than as provided in s.107(2)(a) of the Act.

Clause 34.2 appears to allow the employer to withhold pay entitlements of an employee on public holidays in certain circumstances which are not provided for in the NES.

However, noting clauses 5.6 and 5.7 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.

I am satisfied that each of the requirements of ss.186, 187, and 188 as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 December 2024. The nominal expiry date of the Agreement is 15 November 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Vegco Pty Ltd and the United Workers Union brought an application to the Fair Work Commission for approval of the Vegco Pty Ltd & United Workers Union Enterprise Agreement 2024. The application involved the terms of employment for Vegco's employees, seeking to ensure compliance with the Fair Work Act 2009. The dispute centred on the fairness and reasonableness of the proposed agreement, including issues such as wages, working conditions, and dispute resolution mechanisms.

The legal issues before the Fair Work Commission required a determination of whether the proposed agreement met the criteria for approval under the Fair Work Act. This involved assessing the agreement's compliance with the "better off overall test" (BOOT), ensuring it did not undermine existing awards, and evaluating its fairness and reasonableness. The Commission also considered whether the agreement provided for appropriate dispute resolution mechanisms and if it contained adequate protections for employees.

The Fair Work Commission found that the proposed agreement was fair and reasonable and met the better off overall test. The Commission concluded that the agreement provided for appropriate wage increases, improved working conditions, and adequate dispute resolution mechanisms. The Commission also found that the agreement did not undermine existing awards and provided sufficient protections for employees. Consequently, the Commission approved the Vegco Pty Ltd & United Workers Union Enterprise Agreement 2024.

Vegco Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established