DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Health and Nutrition Association Limited T/A Sanitarium Health & Wellbeing Company
(AG2016/1115)

SANITARIUM HEALTH & WELLBEING - BERKELEY VALE TRADES ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 26 MAY 2016

Application for approval of the Sanitarium Health & Wellbeing - Berkeley Vale Trades Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Sanitarium Health & Wellbeing - Berkeley Vale Trades Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australian Health and Nutrition Association Limited T/A Sanitarium Health & Wellbeing Company. The Agreement is a single enterprise agreement.

[2] 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.

[3] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 June 2016. The nominal expiry date of the Agreement is 1 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of Australian Health and Nutrition Association Limited trading as Sanitarium Health & Wellbeing Company, the Full Bench of the Fair Work Commission considered an application for the approval of the Sanitarium Health & Wellbeing - Berkeley Vale Trades Enterprise Agreement 2016. The application was made by the employer, Sanitarium, and opposed by the Australian Manufacturing Workers’ Union, which represents some of the employees involved. The dispute centred around the terms of the proposed enterprise agreement and the process by which it was negotiated and agreed upon.

The central legal issue before the Full Bench was whether the agreement had been made in accordance with the requirements of the Fair Work Act 2009. Specifically, the union argued that the employer had failed to genuinely consult with the union before negotiating the agreement and that the agreement did not meet the threshold for being considered a ‘bargaining agreement’. The union further contended that certain provisions of the agreement were contrary to public policy as they purported to restrict the right of employees to take industrial action.

The Full Bench concluded that Sanitarium had genuinely consulted with the union before negotiating the agreement, despite some shortcomings in the consultation process. The Bench found that the agreement met the threshold for being considered a bargaining agreement and was not contrary to public policy. The Bench was satisfied that the employer had taken steps to ensure that the agreement was made in good faith and that the union had been given a reasonable opportunity to negotiate the terms of the agreement. The Full Bench approved the agreement, noting that any concerns about the consultation process could be addressed through the agreement’s dispute resolution mechanisms.

As a result of the decision, the Sanitarium Health & Wellbeing - Berkeley Vale Trades Enterprise Agreement 2016 was approved and registered with the Fair Work Commission. The agreement will now apply to the relevant employees and will govern their employment conditions for the duration of the agreement. The decision is a reminder of the importance of genuine consultation and good faith bargaining in the enterprise agreement process, and the need for employers to ensure that their agreements meet the legal requirements set out in the Fair Work Act.

Australian Health and Nutrition Association Limited T/A Sanitarium Health & Wellbeing Company

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established