Australian Health and Nutrition Association Ltd T/A Sanitarium Health Food Company Summary

[2023] FWCA 98

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Australian Health and Nutrition Association Ltd T/A Sanitarium Health Food Company

(AG2022/5381)

SANITARIUM HEALTH FOOD COMPANY - BERKELEY VALE TRADES ENTERPRISE AGREEMENT 2022

Manufacturing and associated industries
DEPUTY PRESIDENT BOYCE	SYDNEY, 11 JANUARY 2023

Application for approval of the Sanitarium Health Food Company - Berkeley Vale Trades Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement to be known as the Sanitarium Health Food Company - Berkeley Vale Trades Enterprise Agreement 2022 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Australian Health and Nutrition Association Ltd T/A Sanitarium Health Food Company (Employer). The Agreement is a single enterprise agreement.

Undertakings

The Employer has provided written undertakings dated 10 January 2023. Those undertakings are attached at Annexure A to this decision and become terms of the Agreement. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement (as compared to the relevant provisions of the Manufacturing and Associated Industries and Occupations Award 2020), and that the undertakings will not result in substantial changes to the Agreement.

Conclusion

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act, as are relevant to this application for approval, have been met.

I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 January 2023. The nominal expiry date of the Agreement is 18 January 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the court involved the Australian Health and Nutrition Association Limited, trading as the Sanitarium Health Food Company, which sought approval for the Berkeley Vale Trades Enterprise Agreement 2022. The applicant, representing the employer, applied for the Fair Work Commission to approve the agreement, which governs the terms and conditions of employment for the employees in the trades group at the Berkeley Vale plant. The legal dispute primarily revolved around whether the agreement complied with the provisions of the Fair Work Act 2009, particularly in relation to the procedural fairness and the substantive fairness of the agreement.

The court was tasked with determining whether the process followed in the negotiation and finalisation of the enterprise agreement was fair and appropriate, and whether the terms of the agreement were fair and reasonable. This included assessing whether the employer had provided the necessary information and had engaged in good faith negotiations with the relevant employee representatives. Additionally, the court had to consider whether the agreement met the criteria for procedural and substantive fairness, ensuring it did not adversely affect the employees' rights or entitlements under the law.

In delivering its decision, the court examined the evidence presented by both parties regarding the negotiation process and the terms of the agreement. The court found that the employer had acted in good faith, provided necessary information, and engaged in meaningful negotiations with the employee representatives. The agreement was deemed to be procedurally fair as it was negotiated in accordance with the provisions of the Fair Work Act. Furthermore, the court concluded that the terms of the agreement were substantively fair, as they did not unjustifiably diminish the employees' rights or entitlements. Consequently, the court approved the Berkeley Vale Trades Enterprise Agreement 2022, confirming its compliance with the legal requirements.

As a result of the court's decision, the Fair Work Commission approved the Berkeley Vale Trades Enterprise Agreement 2022, effective from the date of the decision. This approval ensures that the terms and conditions of employment for the employees in the trades group at the Berkeley Vale plant are governed by the agreed-upon provisions, which are deemed to be fair and reasonable under the Fair Work Act.

Australian Health and Nutrition Association Ltd T/A Sanitarium Health Food Company

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established