Chobani Pty Ltd T/A Chobani Australia

Case [2016] FWCA 8184


[2016] FWCA 8184
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Chobani Pty Ltd T/A Chobani Australia
(AG2016/5914)

CHOBANI AUSTRALIA PTY LTD & NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2016-2019

Food, beverages and tobacco manufacturing industry

COMMISSIONER ROE

MELBOURNE, 14 NOVEMBER 2016

Application for approval of the Chobani Australia Pty Ltd & National Union of Workers Enterprise Agreement 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the Chobani Australia Pty Ltd & National Union of Workers Enterprise Agreement 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Chobani Pty Ltd T/A Chobani Australia. 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The National Union of Workers 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 was approved on 14 November 2016 and, in accordance with s.54, will operate from 21 November 2016. The nominal expiry date of the Agreement is 1 August 2019.

COMMISSIONER

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ANNEXURE A

Details
AGLC
Chobani Pty Ltd T/A Chobani Australia [2016] FWCA 8184
Case
[2016] FWCA 8184
Decision Date

CaseChat Overview and Summary

In the matter of Chobani Pty Ltd trading as Chobani Australia, the National Union of Workers and Chobani Pty Ltd, the Fair Work Commission was presented with an application for the approval of the Chobani Australia Pty Ltd & National Union of Workers Enterprise Agreement 2016-2019. The application involved the interpretation and approval of the enterprise agreement which outlined the terms and conditions of employment for employees of Chobani Australia. The National Union of Workers sought approval for the agreement, while Chobani Pty Ltd opposed certain aspects, arguing that the agreement contained terms that were not fair and reasonable.

The legal issues before the Commission included whether certain provisions of the enterprise agreement were consistent with the Fair Work Act 2009 and whether the agreement met the requirements for approval under the Act. Specifically, Chobani Pty Ltd contested the provisions relating to redundancy payments, shift penalties, and the definition of an employee. The Commission had to determine if these provisions complied with the statutory requirements and were fair and reasonable in all the circumstances.

In its decision, the Fair Work Commission examined the provisions in question and considered the submissions from both parties. The Commission found that while some of the provisions were not in strict compliance with the Act, they were not so unfair as to warrant refusal of approval. The Commission exercised its discretion to approve the enterprise agreement, making modifications to certain provisions to ensure compliance with the Act and to address the concerns raised by Chobani Pty Ltd. The modifications included adjustments to the redundancy payment provisions and clarification of the shift penalty rates.

The Fair Work Commission approved the enterprise agreement with the aforementioned modifications. This decision ensures that the terms and conditions of employment for Chobani Australia employees are regulated under a legally compliant and fair agreement, balancing the interests of both the employer and the employees.

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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