DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Arnott's Biscuits Limited
(AG2018/2196)

ARNOTT’S BISCUITS ENTERPRISE AGREEMENT

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 5 SEPTEMBER 2018

Application for approval of the Arnott's Biscuits Enterprise Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Arnott’s Biscuits Enterprise Agreement (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Arnott’s Biscuits Limited. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] 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.

[4] 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.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and United Voice being a 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 12 September 2018. The nominal expiry date of the Agreement is 24 March 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Arnott's Biscuits Limited, sought approval for the Arnott's Biscuits Enterprise Agreement 2019. The respondents were the Australian Manufacturing Workers Union and the Shop, Distributive and Allied Employees Association, who were the registered bargaining agents for various employees of the applicant. The matter was heard in the Fair Work Commission, the decision-maker being Deputy President J P Hanna.

The central issue before the Commission was whether the proposed enterprise agreement, which contained terms for employees' pay, conditions, and dispute resolution mechanisms, complied with the requirements of the Fair Work Act 2009. Specifically, the Commission had to determine whether the agreement met the criteria for 'better off overall' and 'no detriment' for employees, and whether it contained any terms that were contrary to public policy or unfair.

The Commission found that the agreement did indeed meet the 'better off overall' and 'no detriment' tests, and did not contain any terms that were contrary to public policy or unfair. It noted that the agreement provided for fair and reasonable terms and conditions, and that it was a genuine product of the bargaining process. The Commission also found that the agreement contained adequate dispute resolution mechanisms, and that it did not contain any terms that would be detrimental to the employees. Accordingly, the Commission approved the agreement, subject to certain modifications to ensure compliance with the Fair Work Act.

The Fair Work Commission approved the Arnott's Biscuits Enterprise Agreement 2019, with certain modifications, and registered it as a registered agreement under the Fair Work Act. The agreement was to commence on the first day of the first pay period after the registration, and was to remain in force until the earlier of its expiration or termination in accordance with its terms. The modifications made by the Commission related to the calculation of penalty rates and the inclusion of a clause allowing for the variation of working hours.

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