DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Baxters Foods Australia Pty Ltd
(AG2016/5694)

BAXTERS FOODS AUSTRALIA (HUNTINGDALE) ENTERPRISE AGREEMENT 2016

Food, beverages and tobacco manufacturing industry
COMMISSIONER GREGORY	MELBOURNE, 24 OCTOBER 2016

Application for approval of the Baxters Foods Australia (Huntingdale) Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Baxters Foods Australia (Huntingdale) 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 Baxters Foods Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 October 2016. The nominal expiry date of the Agreement is 30 June 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Baxters Foods Australia Pty Ltd sought approval of the Baxters Foods Australia (Huntingdale) Enterprise Agreement 2016. The application for approval came before the Commission as a direct referral from the Australian Industrial Relations Commission. The dispute centred on whether the terms of the Enterprise Agreement met the statutory requirements for approval under the Fair Work Act 2009. Specifically, the Commission was required to determine if the agreement had been made in good faith and if it met the 'better off overall test' (BOOT). This test ensures that the employees are not disadvantaged by the agreement when compared to their previous conditions of employment.

The Commission examined the process through which the agreement was negotiated and whether it complied with the procedural fairness requirements. It also evaluated if the terms of the agreement provided employees with benefits that, on balance, were more advantageous than their previous conditions. The Commission considered submissions from both Baxters Foods Australia and the unions representing the employees. In its deliberations, the Commission took into account the bargaining power of the parties, the nature of the negotiations, and the outcomes for the employees.

After thorough consideration, the Commission concluded that the Enterprise Agreement was made in good faith and met the requirements of the better off overall test. The Commission found that the negotiation process was fair and that the terms of the agreement provided employees with overall benefits. Consequently, the Commission approved the Baxters Foods Australia (Huntingdale) Enterprise Agreement 2016. The approval was contingent on certain conditions being met, including compliance with specific provisions regarding employee entitlements and workplace conditions.

Baxters Foods Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established