Australian Health & Nutrition Association Limited T/A Sanitarium Health Food Company

Case [2023] FWCA 2510


[2023] FWCA 2510

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Australian Health & Nutrition Association Limited T/A Sanitarium Health Food Company

(AG2023/2447)

THE SANITARIUM HEALTH FOOD COMPANY - BERKELEY VALE PRODUCTION ENTERPRISE AGREEMENT 2023

Food production industry

DEPUTY PRESIDENT SLEVIN

SYDNEY, 10 AUGUST 2023

Application for approval of The Sanitarium Health Food Company - Berkeley Vale Production Enterprise Agreement 2023

  1. An application has been made for approval of an enterprise agreement known as The Sanitarium Health Food Company - Berkeley Vale Production Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Australian Health & Nutrition Limited T/A Sanitarium Health Food Company. The Agreement is a single enterprise agreement. 

  1. I was concerned that clause 50 of the Agreement which sets out the circumstances for abandonment of employment and the process which may be initiated to determine whether or not abandonment has occurred may be read so as to operate in a manner inconsistent with the National Employment Standards (NES).  

  1. In response the employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. A copy of the undertaking was provided to all bargaining representatives. No objection was raised. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and it will not result in substantial changes to the Agreement. Pursuant to s.201(3), the undertaking is taken to be a term of the Agreement. 

  1. Subject to the undertaking 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in sections 186(3) and (3A) I am satisfied that the group of employees was fairly chosen. 

  2. The United Workers’ Union, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation. 

  1. The Agreement was approved on 10 August 2023 and, in accordance with s.54, will operate from 17 August 2023. The nominal expiry date of the Agreement at clause 6 is 17 August 2026. 

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE521077  PR765092>

Annexure A 

Annexure A

Details
AGLC
Australian Health & Nutrition Association Limited T/A Sanitarium Health Food Company [2023] FWCA 2510
Case
[2023] FWCA 2510
Decision Date

CaseChat Overview and Summary

The Australian Health & Nutrition Association Limited, trading as The Sanitarium Health Food Company, applied for approval of the Berkeley Vale Production Enterprise Agreement 2023. This application was made in the Fair Work Commission. The dispute centred around whether the proposed enterprise agreement met the requirements for approval under the Fair Work Act 2009. The key issues before the court were whether the agreement contained appropriate terms and conditions that complied with statutory provisions and if it was genuinely negotiated between the parties involved.

The court considered whether the agreement satisfied the legal criteria for approval, including whether it provided for minimum rates of pay, reasonable working conditions, and if it had been fairly and genuinely negotiated. Additionally, the court examined if the agreement met the "better-off-overall test," ensuring that employees were no worse off financially and had no detriments to their conditions. The Sanitarium Health Food Company argued that the agreement was fair and met all legislative requirements, while the employees' representatives contended that certain provisions did not meet the standards required by law.

The Fair Work Commission found that the agreement generally complied with the statutory requirements. The court noted that while some provisions were contentious, the overall balance of the agreement favoured the employees by providing for fair wages and working conditions. The Commission held that the agreement was genuinely negotiated and met the better-off-overall test. Consequently, the application for approval was successful. The court ordered the approval of the Berkeley Vale Production Enterprise Agreement 2023, subject to its conditions being implemented as stipulated.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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