BIDFOOD CENTRAL COAST - ENTERPRISE AGREEMENT 2026

Application for approval of the Bidfood Central Coast - Enterprise Agreement 2026

[1] BFS Central Coast Pty Limited trading as Bidfood Central Coast (the Employer) has made an application for approval of an enterprise agreement known as the Bidfood Central Coast - Enterprise Agreement 2026 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] The Agreement will apply to employees who are covered by either the Storage Services and Wholesale Award 2020 (Storage Award), Road Transport and Distribution Award 2020 (Road Transport Award), Clerks - Private Sector Award 2020 (Clerks Award), or the Commercial Sales Award 2020 (Commercial Sales Award).

[3] The Agreement contains a delegates' rights term at Clause 31. When compared to the relevant Award, some aspects of the workplace delegates' rights term in the Agreement are less favourable. Pursuant to s.205A of the Act, the workplace delegates' rights term in the Storage Award is taken to be a term of the Agreement. A copy of the workplace delegates rights term can be found at Schedule 1 of the Agreement.

Inconsistency with the National Employment Standards (NES)

[4] The following provisions of the Agreement appear to be inconsistent with the NES:

1. Clause 2.6.2 states that an employee will be deemed to have abandoned their employment if they have failed to attend for three consecutive rostered shifts and have not notified the employer of the reasons for their failure to attend. It is unclear from this clause whether employees would be entitled to payment of notice of termination in accordance with ss. 117-123 of the Act.
2. Clause 3.4.4 provides that on termination the employee authorises the Employer to deduct an amount equivalent to any overpayment of wages or allowances owed by an employee from the Employee's termination monies. This provision does not appear to limit the source of monies which may be deducted. The effect of this is that this clause appears to permit the employer to deduct employee's entitlements under the NES, inconsistent with Chapter 2 Part 2.2 Division 2 of the Act.

1. Clause 7.1.6 provides that employees may be required to undergo absenteeism management plans, which amongst other things, may specify the types of evidence an employee may provide to substantiate personal leave and require employees to provide notice of absence by deadlines. This provision is stated to operate notwithstanding any evidence requirements of the Act and therefore may exclude the NES.

[5] I note that in accordance with the NES precedence term in clause 1.3.5 of the Agreement, the above clauses will be read and interpreted in conjunction with the NES.

Better Off Overall Test (BOOT) Issues - Multiple Awards

[6] The Commission raised the following issues with the Employer which are relevant to whether employees are better off overall under the Agreement compared to the applicable Award: 

1. Clause 3.2.1(b) of the Agreement provides an annual salary for storage, clerical and commercial sales employees that appears to be 7.35%-16.11% above the Awards. Clause 7.8.2 provides where an employee is paid an annual salary, certain provisions of the Agreement can be excluded for those employees, including wages, shift penalties, weekend penalties, allowances, overtime, annual leave loading and public holiday penalties. Rates of pay do not appear high enough to compensate for the reductions.

1. The shift definitions in the Agreement differ from those contained in the Awards. Clause 3.7.3 defines morning shift as starting at or after 1:00 am and before 5:00 am (paid at 112.5%), and afternoon shift as finishing at or after 7:30 pm and before 2:00 am (paid at 115%). The Agreement is also silent on some other shift definitions and penalties. Some rates of pay do not appear high enough to compensate for reductions in shift penalties. Part time and casual employees appear to be further impacted by this concern.

1. Clause 4.1 of the Agreement provides spans of hours which appear to differ from those within the Storage, Road Transport and Clerks Awards so that Grade 1 and Grade 2 Level 2 employees may not be better off overall if working increased spans where they would otherwise be entitled to overtime under the Awards.

1. Clause 4.1.2(b) of the Agreement provides that part time employees may agree to work extra non-rostered ordinary hours without the payment of overtime by mutual agreement with the Employer. Clause 10 of all applicable Awards except the Commercial Sales Award provide that all time worked in excess of agreed hours will be paid at overtime rates, unless the hours are varied by written agreement. Clause 4.1.2(b) of the Agreement does not specify that the agreement must be in writing, however the Employer submitted that it must be read in accordance with clause 4.1.2(a) which provide that hours can be altered by mutual agreement in writing.

2. Clause 4.1.4(d) of the Agreement states that 'casual loading shall not be paid on overtime or public holidays to a casual Employees (this will not apply to an Employee employed as a clerk).' Casual employees are entitled to receive their casual loading on overtime and public holidays on a cumulative basis under clauses 21.1(d) and 22.1(d) of the Storage Award and casual employees receive casual loading on public holidays on a cumulative basis under clause 22.8 of the Road Transport Award. Rates of pay for some employees may not compensate, depending on patterns of work.

1. Clause 4.2.4 of the Agreement provides that an Employee will be entitled to at least ten consecutive hours off duty after performing overtime between their finishing time (including overtime) of their shift and before the commencement of their ordinary hours on their following shift, provided that eight hours may be substituted for ten where there is agreement between the Employer and the Employee. There does not appear to be a penalty if an employee is required or resumes working without having the required break. This appears less beneficial than the Awards which all provide at least ten hours between work on successive days and where an employee works so much overtime that there are fewer than ten hours between finishing overtime on one day and commencing ordinary work on the next day, the employee will be released until the employee has had at least ten consecutive hours off without loss of pay for ordinary working time occurring during such absence. Additionally, the Awards all provide that if an employee resumes work or continues work without having had ten consecutive hours off duty, they will be paid at 200% until such time as they are released from duty. Rates of pay may not compensate for the reduction in break and penalties. The Employer submitted, on the basis of work patterns that it provided, that it not reasonably foreseeable that employees will resume work after with less than a ten hour break. I am satisfied of this matter based on the submissions of the Employer, for the purpose of s.193A(6).

1. Clause 4.6 of the Agreement provides that where the Agreement provides for a minimum engagement, save and except for public holidays, and a portion of that time is not worked by the Employee, then the time not worked will be paid at the Employee's base rate of pay. The Agreement provides minimum engagements for Saturdays and Sundays in clause 3.8.3. All of the Awards provide for the minimum engagements on weekends to be paid at the penalty rate. Issues may arise where part-time or casual employees work less than their minimum engagement on weekends, with few ordinary hours to compensate. The Employer submitted, on the basis of work patterns that it provided, that it not reasonably foreseeable that casual and part time employees will work on less than the minimum engagement on weekends. I am satisfied of this matter based on the submissions of the Employer, for the purpose of s.193A(6).

[7] The Commission raised the following issues with the Employer which are relevant to whether employees are better off overall under the Agreement compared to the Road Transport Award:

1. Clause 4.1 of the Agreement provides for a maximum of ten hours per day, with clause 4.1.1(b) specifying that for full time employees, a driver employed at Grade 2 Level 1 or below will work a maximum of eight ordinary hours per day. Clause 13 of the Award provides for a maximum of eight hours per day, where overtime rates would apply after eight hours worked under the Award. Rates of pay for full time employees appear high enough to compensate, unless these employees are also working during an increased span of hours. Casual and part time employees who work in excess of eight hours per day may not be better off overall.

1. Clause 5.7.1 of the Agreement provides that work performed on a public holiday will be paid at 250%. Clause 23.2 of the Award provides that where a permanent employee or casual employee performs work outside of ordinary hours on Good Friday and/or Christmas Day they will be entitled to 300% for all hours worked, and a casual employee will be entitled to casual loading in addition to this rate. Rates of pay may not be high enough to compensate for casual employees who may be more likely to work on public holidays in isolation. The Employer submitted that drivers do not work on public holidays including Good Friday and/or Christmas Day. I am satisfied, based on the submissions of the Employer, that is it not reasonably foreseeable that drivers will work on public holidays including Good Friday and/or Christmas Day for the purpose of s.193A(6).

[8] The Commission raised the following issues with the Employer which are relevant to whether employees are better off overall under the Agreement compared to the Clerks Award:

1. Clause 3.9 of the Agreement provides entitlements to allowances. It is silent on some allowances contained at clause 19 of the Award such as the laundry and living away from home allowance. Rates of pay may not compensate in addition to other reductions. The Employer submitted that there is no requirement for a clerk to travel or live away from home.

2. The Agreement appears to be silent on providing entitlements for employees working during a meal break, inconsistent with clause 15.4 of the Award which provides an employer must pay an employee who is required to work through their meal break 200% of the minimum hourly rate from when the meal break would have commenced until a meal break is allowed. Some rates of pay may not compensate for this reduction depending on reasonable foreseeability. The Employer submitted that there is no requirement for a clerk to work through lunch breaks.

[9] Clause 3.9 of the Agreement contains some allowances however omits several allowances contained at clause 17 of the Award such as weekend and living away from home allowances and reimbursement of accommodation and expenses. Rates of pay may not compensate. The Employer submitted that there is no requirement for a Sales Representatives clerk to work on weekends or live away from home.

[10] The Employer provided rosters which it submitted showed employees' regular shift patterns. I am satisfied that the patterns of work in the rosters provided by the Employer are reasonably foreseeable for the purpose of s.193A(6).

[11] The Employer provided written submissions and undertakings to address the above BOOT issues. A copy of the undertakings is attached in Schedule 2 of the Agreement. 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.

[12] 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.

[13] The United Workers Union (UWU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it.

[14] In accordance with s.201(2), I note that the Agreement covers the UWU.

[15] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 April 2026. The nominal expiry date of the Agreement is 1 January 2028.

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