Irreconcilable differences: FWC Full Bench refuses approval of Bakery enterpise agreement

In SDAEA v Beechworth Bakery Employee Co Pty Ltd t/a Beechworth Bakery [2017] FWCFB 1664, a Full Bench of the Fair Work Commission (FWC) upheld the union's appeal against approval of an enterprise agreement.

At first instance, the overturning of the decision centred on an undertaking given by the employer to ensure reconciliation of any shortfall in payment under the agreement compared with the underpinning award.

In this article, we examine the decision as well as its implications for employers in ensuring that agreements meet the 'better off overall test' (BOOT) for approval by the FWC.

THE BACKGROUND OF THE CASE

Deputy President Sams approved the Beechworth Bakery Employee Co Pty Ltd Enterprise Agreement 2016 (Agreement) on 9 December 2016. The Agreement was to cover 232 employees across six locations in Victoria and NSW, and was approved on the basis of undertakings given by the employer to address concerns that the Agreement did not pass the