DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Australian Health & Nutrition Association Limited T/A Sanitarium Health & Wellbeing Company
(AG2017/1730)

SANITARIUM HEALTH AND WELLBEING COMPANY COORANBONG ENTERPRISE AGREEMENT 2014

Food, beverages and tobacco manufacturing industry
COMMISSIONER MCKENNA	SYDNEY, 25 MAY 2017

Application for variation of the Sanitarium Health and Wellbeing Company Cooranbong Enterprise Agreement 2014.

[1] An application has been made for the approval of a variation of the Sanitarium Health and Wellbeing Company Cooranbong Enterprise Agreement 2014 (“the Agreement”). The application was made pursuant to s.210 of the Fair Work Act 2009 (“the Act”) by Australian Health & Nutrition Association Limited T/A Sanitarium Health & Wellbeing Company. Shortly stated, the variation involves a 2.15% pay increase, effective 17 June 2017, and an associated variation to the nominal expiry date of the Agreement.

[2] I am satisfied the relevant requirements of s.210 and s.211 of the Act concerning this application for approval have been met. The application for the variation of the Agreement is approved and the variation will operate from today.

[3] A consolidated version of the Agreement, as varied, is attached to this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved the Australian Health & Nutrition Association Limited, trading as Sanitarium Health & Wellbeing Company, and its employees. The company sought to vary the existing Sanitarium Health and Wellbeing Company Cooranbong Enterprise Agreement 2014, with the primary aim of implementing changes to the rostering system and reducing the number of employees covered by the agreement. The dispute centred around the company's desire to streamline its workforce and improve operational efficiency, which employees argued would adversely affect their working conditions and job security.

The legal issues before the commission were multifaceted. They included whether the proposed changes to the rostering system and the reduction in the number of employees were justified under the relevant provisions of the Fair Work Act 2009. The commission also needed to determine whether the company had adequately consulted with the employees and their representatives and whether the proposed changes met the "better off overall test." This test requires that employees be no worse off and preferably better off overall as a result of the changes.

In its decision, the commission acknowledged the company's need to adapt to changing market conditions and improve efficiency. However, it emphasised the importance of maintaining a fair and balanced approach to workplace changes. The commission found that while the company had demonstrated a legitimate need for some changes, the proposed reductions in workforce and alterations to the rostering system did not sufficiently meet the better off overall test. The commission also noted deficiencies in the consultation process, which it deemed inadequate in addressing the employees' concerns. As a result, the commission rejected the application for variation of the enterprise agreement.

Australian Health & 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