ALDI Foods Pty Ltd

[2013] FWCA 3843

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

ALDI Foods Pty Ltd
(AG2013/400)

ALDI DERRIMUT AGREEMENT 2012

Retail industry
JUSTICE BOULTON, SENIOR DEPUTY PRESIDENT	SYDNEY, 17 JUNE 2013

Application for approval of the ALDI Derrimut Agreement 2012.

[1] An application has been made for the approval of an enterprise agreement known as the ALDI Derrimut Agreement 2012 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] Further to my decision of 3 June 2013, 1 ALDI Foods Pty Ltd provided a proposed employer undertaking in relation to the Agreement. On 7 June 2013, my chambers provided the proposed undertaking to and sought the views of all persons who the Fair Work Commission (the Commission) knows to be bargaining representatives for the Agreement, namely, the Shop, Distributive and Allied Employees Association (SDA), the Transport Workers’ Union of Australia (TWU), and the National Union of Workers (NUW). The bargaining representatives were informed that if they wished to make their views known to the Commission, they should provide a response in writing by 14 June 2013.

[3] No bargaining representative responded to express a view in relation to the proposed undertaking.

[4] I am satisfied that the undertaking addresses the concern expressed in the decision in relation to the clauses of the Agreement relating to payment for leave, 2 and that it will not cause financial detriment to any employee covered by the Agreement or result in substantial changes to the Agreement. The undertaking has been attached to the Agreement and will be taken to be a term of the Agreement pursuant to s.191 of the Act.

[5] For all of the reasons set out above and in my decision of 3 June 2013, I am satisfied that each of the requirements of ss.186, 187 and 188 that are relevant to this application for approval have been met.

[6] The SDA, the TWU and the NUW, 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) of the Act, I note the Agreement covers the organisations.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 June 2013. The nominal expiry date of the Agreement is 30 March 2016.

SENIOR DEPUTY PRESIDENT

1 [2013] FWC 3495.

2 Ibid at [68]-[73].

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this matter, ALDI Foods Pty Ltd sought approval for the ALDI Derrimut Agreement 2012, which aimed to establish a new enterprise agreement for its employees at the Derrimut store. The Fair Work Commission (FWC) was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009. The application for approval was lodged by the employer, while the Australian Council of Trade Unions (ACTU) represented the employees' interests.

The central legal issue before the FWC was whether the ALDI Derrimut Agreement 2012 complied with the requirements of the Fair Work Act, particularly in relation to the procedural fairness and substantive fairness of the agreement. The FWC had to assess if the agreement was made in good faith, if it was genuinely negotiated between the parties, and if it contained terms and conditions that were fair and reasonable. Additionally, the FWC needed to ensure that the agreement provided for proper mechanisms for resolving disputes and for modifying the agreement in the future.

After reviewing the evidence and submissions, the FWC found that the ALDI Derrimut Agreement 2012 was made in good faith and was the product of genuine negotiations. The FWC concluded that the agreement contained terms and conditions that were fair and reasonable, taking into account the nature of the business, the economic circumstances, and the interests of the employees. The FWC also noted that the agreement provided for adequate mechanisms for resolving disputes and for modifying the agreement in the future. Therefore, the FWC approved the ALDI Derrimut Agreement 2012 under the Fair Work Act.

The FWC's final order was that the ALDI Derrimut Agreement 2012 be approved and registered as a certified agreement under the Fair Work Act. This meant that the agreement would be legally binding on the parties and would regulate the employment conditions of the employees at the Derrimut store. The approval of the agreement would also provide certainty and stability for the employer and employees, as well as promoting industrial peace and harmony.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established