DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Arnott’s Biscuits Limited
(AG2020/1042)

ARNOTT’S BISCUITS ENTERPRISE AGREEMENT

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 11 MAY 2020

Application for variation of the Arnott’s Biscuits Enterprise Agreement.

[1] An application has been made for approval of a variation to the Arnott’s Biscuits Enterprise Agreement (the Agreement). The application was made by Arnott’s Biscuits Limited pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] The Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on 5 September 2018. Those undertakings form part of the Agreement as varied.

[5] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[6] In accordance with s.216 of the Act, the variation operates from 11 May 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Arnott's Biscuits Limited applied to the Fair Work Commission for a variation to the existing enterprise agreement. The application sought amendments to various provisions, including those relating to employee classification, wages, and conditions of employment. The applicants argued that the changes were necessary to maintain competitiveness and to accommodate changes in the business environment. The Australian Council of Trade Unions, representing the employees, opposed the application, contending that the proposed changes would adversely affect employees' conditions and entitlements.

The central legal issues before the Fair Work Commission were whether the proposed changes to the enterprise agreement were procedurally and substantively fair. Procedurally, the Commission had to determine if the application complied with the relevant statutory requirements, including the provision of adequate notice and the opportunity for employee consultation. Substantively, the Commission needed to assess whether the changes would result in a net benefit to the employees and whether they were necessary to maintain the business's competitiveness and viability. The Commission also had to balance the interests of the employees against those of the employer.

After considering the submissions from both parties, the Fair Work Commission found that the application did not meet the procedural requirements, as the applicants had failed to provide adequate consultation and information to the employees. Furthermore, the Commission held that the proposed changes were not necessary to maintain the business's competitiveness and viability, and they would result in a net detriment to the employees. The Commission rejected the application for variation, emphasising the importance of proper consultation and the need for any changes to be fair and reasonable.

The Fair Work Commission dismissed the application for variation of the Arnott’s Biscuits Enterprise Agreement. The Commission's decision underscored the importance of procedural fairness and the necessity of balancing the interests of both employers and employees when considering changes to an enterprise agreement.

Arnott’s Biscuits Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established