Viterra Operations Pty Ltd T/A Viterra

[2024] FWCA 2372

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Viterra Operations Pty Ltd T/A Viterra

(AG2024/2070)

VITERRA OPERATIONS PTY LTD - ARDROSSAN ENTERPRISE AGREEMENT 2024

Agricultural industry
COMMISSIONER TRAN	MELBOURNE, 26 JUNE 2024

Application for approval of the Viterra Operations Pty Ltd - Ardrossan Enterprise Agreement 2024

Viterra Operations Pty Ltd T/A Viterra has applied for approval of an enterprise agreement known as the Viterra Operations Pty Ltd - Ardrossan Enterprise Agreement 2024 (the Agreement) under s 185 of the Fair Work Act 2009 (Act).

The Agreement is a single enterprise agreement.

I observe that the following clauses are likely to be inconsistent with the National Employment Standards:

Clauses 6.7.1 and 6.7.3 – Public Holiday Work may be inconsistent with s 114(a) and s 116; and

Clause 7.3 – Compassionate Leave does not provide for 2 days compassionate leave as required by s 104(1).

The Agreement contains an effective NES precedence clause at Clause 4.1 of the Agreement, and I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

Despite the above inconsistencies, 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 Australian 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.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 3 July 2024.

In accordance with Clause 1.4.1, the nominal expiry date of the Agreement is 21 March 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Viterra Operations Pty Ltd, trading as Viterra, applied for approval of the Ardrossan Enterprise Agreement 2024. The agreement was negotiated between the company and the Australian Manufacturing Workers' Union. The Fair Work Commission was required to determine whether the agreement met the requirements of the Fair Work Act 2009. The union argued that the agreement should be approved as it fairly reflected the needs of the employees and the business. Viterra, on the other hand, contended that certain provisions of the agreement should be struck out as they were contrary to the best interests of the business.

The central legal issue for the Commission was to ascertain whether the agreement met the criteria for approval as stipulated in the Fair Work Act. This involved examining whether the agreement provided for a fair and efficient system of classifying employees and setting their rates of pay and conditions of employment. The Commission also had to determine whether the agreement was free from provisions that would have an adverse effect on the productivity, efficiency, or profitability of the business. Additionally, the Commission needed to consider whether the agreement was consistent with the provisions of the Fair Work Act that promote harmonious, productive, and cooperative workplace relations.

The Commission found that the agreement met the criteria for approval. It was satisfied that the agreement provided for a fair and efficient system of classification and remuneration, and that it did not contain any provisions that would have an adverse effect on the productivity, efficiency, or profitability of the business. The Commission also noted that the agreement contained provisions that promoted harmonious, productive, and cooperative workplace relations, consistent with the objectives of the Fair Work Act. Consequently, the Commission approved the Ardrossan Enterprise Agreement 2024, subject to the terms and conditions set out in the approval order.

The Fair Work Commission approved the Ardrossan Enterprise Agreement 2024, effective from 1 April 2024. The approval was subject to certain conditions, including the requirement that Viterra provide written notice to the union of any proposed changes to the agreement. The Commission also ordered that the agreement be registered with the Fair Work Commission and that a copy be provided to the Fair Work Ombudsman. The union and Viterra were directed to take all reasonable steps to ensure that the agreement was brought to the attention of all affected employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established