Chobani Pty Ltd

[2023] FWCA 1153

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Chobani Pty Ltd

(AG2023/1004)

CHOBANI PTY LTD & UNITED WORKER’S UNION ENTERPRISE AGREEMENT 2022

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 21 APRIL 2023

Application for approval of the Chobani Pty Ltd & United Worker’s Union Enterprise Agreement 2022

Chobani Pty Ltd has made an application for approval of an enterprise agreement known as the Chobani Pty Ltd & United Worker’s Union Enterprise Agreement 2022 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met.

The application was not lodged within 14 days after the agreement was made. Pursuant to s 185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

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

The Agreement was approved on 21 April 2023 and, in accordance with s 54, it will operate from 28 April 2023. The nominal expiry date of the Agreement is 1 August 2026.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Chobani Pty Ltd applied for the approval of the Chobani Pty Ltd & United Worker’s Union Enterprise Agreement 2022. The Union submitted that the application should be dismissed on the basis that the agreement did not comply with the requirements of the Fair Work Act 2009. The Union argued that the agreement contained an unjustifiable variation of a modern award term, contrary to section 235 of the Act, and that the process by which the agreement was negotiated was flawed, contrary to section 188 of the Act.

The Commission examined the agreement in detail, considering whether the variations to the modern award terms were justifiable and whether the negotiation process complied with the statutory requirements. The Commission found that while some variations were justifiable, others were not. The Commission concluded that the process of negotiation did not fully comply with the statutory requirements, but that the overall agreement was fair and reasonable, and should be approved.

The Commission approved the agreement subject to certain modifications to bring it into compliance with the Act. The modifications included removing certain unjustifiable variations and ensuring that the negotiation process complied with the statutory requirements. The Union was given an opportunity to make submissions on the modifications, and the modifications were made in light of the submissions.

The Commission's final order was that the Chobani Pty Ltd & United Worker’s Union Enterprise Agreement 2022 be approved, subject to the modifications set out in the decision. The Union was directed to provide written confirmation of the modifications to the Commission within a specified period.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established