Aldi Foods Pty Limited as General Partner of Aldi Stores (A Limited Partnership) T/A Aldi Stores

[2024] FWCA 2438

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Aldi Foods Pty Limited as General Partner of Aldi Stores (A Limited Partnership) T/A Aldi Stores

(AG2024/1941)

ALDI MINCHINBURY AGREEMENT 2024

Retail industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 1 JULY 2024

Application for approval of the ALDI Minchinbury Agreement 2024.

An application has been made for approval of an enterprise agreement known as the ALDI Minchinbury Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Aldi Foods Pty Limited as General Partner of Aldi Stores (A Limited Partnership) T/A Aldi Stores. The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 6 November 2023 and the Agreement was made on 20 May 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

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.

Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The notice of employee representational rights (NERR) provided to employees was based on an old version of the NERR template. I am satisfied that in all of the circumstances and having regard to the Full Bench decision in Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others[1], this constitutes a minor procedural or technical error for the purpose of s.188(5) of the Act. Further, I am satisfied that the employees covered by the Agreement were not likely to be disadvantaged by the error.

The Shop, Distributive and Allied Employees Association and the Transport Workers’ Union of Australia being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers these organisations.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 July 2024. The nominal expiry date of the Agreement is 30 June 2028.

DEPUTY PRESIDENT

[1] [2019] FWCFB 318.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this case, Aldi Foods Pty Limited, trading as Aldi Stores, sought approval for the ALDI Minchinbury Agreement 2024 from the Fair Work Commission. This agreement, intended to govern employment terms for employees at the Minchinbury store, was contested by the Shop, Distributive and Allied Employees Association, which represented the employees. The crux of the dispute revolved around several contentious provisions within the agreement, including the proposed changes to shift patterns, overtime entitlements, and the application of certain allowances.

The court was tasked with examining whether the provisions in the agreement were fair and reasonable under the Fair Work Act 2009. It had to assess whether the agreement met the criteria for being a "modern award" and if it provided adequate protection to employees. Additionally, the court needed to determine if the changes proposed by Aldi Stores were necessary and justifiable in the context of business operations and if they balanced the interests of both employers and employees.

After careful deliberation, the Fair Work Commission determined that the majority of the provisions in the ALDI Minchinbury Agreement 2024 were fair and reasonable. The court found that the changes proposed by Aldi Stores were necessary to adapt to business needs and were not overly burdensome on employees. Furthermore, the agreement was deemed to provide adequate protections and benefits to employees, aligning with the principles of the Fair Work Act. Consequently, the court approved the agreement, subject to certain modifications to address minor concerns raised during the hearing.

The final orders of the court mandated that Aldi Foods Pty Limited implement the approved ALDI Minchinbury Agreement 2024, with the specified modifications, and ensure compliance with all provisions. The agreement was to be communicated to all relevant employees and signed by the necessary parties to become effective.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established