ALDI Foods Pty Ltd

[2013] FWCA 3837

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

ALDI Foods Pty Ltd
(AG2013/307)

ALDI MINCHINBURY AGREEMENT 2012

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

Application for approval of the ALDI Minchinbury Agreement 2012.

[1] An application has been made for the approval of an enterprise agreement known as the ALDI Minchinbury 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] The only bargaining representative to respond was the TWU, which does not object 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

The case involved ALDI Foods Pty Ltd, which sought approval of the ALDI Minchinbury Agreement 2012. This agreement, which was made under section 178 of the Fair Work Act 2009, aimed to modify certain terms and conditions of employment for ALDI's employees in Minchinbury. The application for approval was heard in the Fair Work Commission, with Deputy President J P D Gair presiding over the matter.

The central legal issue that the Fair Work Commission had to resolve was whether the proposed changes in the ALDI Minchinbury Agreement 2012 were consistent with the objectives of the Fair Work Act. Specifically, the Commission had to determine whether the agreement met the "better off overall test," which requires that employees be no worse off and generally better off financially under the new agreement compared to their existing conditions. The Commission also had to consider whether the changes were necessary to improve productivity and flexibility in the workplace.

In delivering the decision, Deputy President Gair found that the proposed changes in the ALDI Minchinbury Agreement 2012 were in compliance with the Fair Work Act. The Commission concluded that the new agreement would result in employees being no worse off and, in many cases, better off overall. Furthermore, the Deputy President determined that the changes were necessary to enhance productivity and flexibility, which are essential for the business to operate effectively. Therefore, the application for approval of the agreement was granted.

The Fair Work Commission ordered that the ALDI Minchinbury Agreement 2012 be approved as made, effective from the date of the decision. This approval allows ALDI Foods Pty Ltd to implement the changes outlined in the agreement, subject to the terms and conditions specified.

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