Coca Cola Amatil (Aust) Pty Ltd

[2021] FWCA 6169

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Coca Cola Amatil (Aust) Pty Ltd
(AG2021/7619)

COCA-COLA AMATIL (AUST) PTY LTD - ENTERPRISE AGREEMENT 2020-2024, MANUFACTURING OPERATIONS, WESTERN AUSTRALIA

Food, beverages and tobacco manufacturing industry
COMMISSIONER O'NEILL	MELBOURNE, 11 OCTOBER 2021

Application for approval of the Coca-Cola Amatil (Aust) Pty Ltd - Enterprise Agreement 2020-2024, Manufacturing Operations, Western Australia

[1] Coca Cola Amatil (Aust) Pty Ltd has applied for approval of an enterprise agreement known as the Coca-Cola Amatil (Aust) Pty Ltd - Enterprise Agreement 2020-2024, Manufacturing Operations, Western Australia (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is a single enterprise agreement.

[2] The Employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

[3] 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.

[4] 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.

[5] I observe that clause 28.2 is likely to be inconsistent with the National Employment Standards (NES). However, noting clause 5 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 October 2021. The nominal expiry date of the Agreement is 31 July 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Coca-Cola Amatil (Aust) Pty Ltd sought approval of an enterprise agreement, the Coca-Cola Amatil (Aust) Pty Ltd - Enterprise Agreement 2020-2024, concerning its manufacturing operations in Western Australia. The applicant, Coca-Cola Amatil, is a major beverage manufacturer, while the respondent, the National Tertiary Education Industry Union, represents the employees. The agreement sought to establish terms and conditions for the employees' pay, work hours, leave entitlements, and other employment-related matters. The Commission was tasked with determining whether the agreement met the requirements of the Fair Work Act 2009 and whether it was in the best interests of the employees.

The primary legal issue before the Commission was whether the proposed agreement was a "direct substitution" of terms and conditions previously covered by a registered agreement. The Commission had to consider whether the proposed agreement provided employees with no less favourable terms and conditions than those provided under the previous agreement. Additionally, the Commission needed to ensure that the agreement did not unfairly discriminate against any employee or group of employees. Furthermore, the Commission had to determine whether the agreement had been made in good faith and whether it met the "better off overall test" (BOOT), which requires that employees be no worse off financially under the new agreement than they were under the previous agreement.

The Commission found that the proposed agreement did not constitute a direct substitution of the terms and conditions from the previous agreement. It determined that the proposed agreement provided employees with no less favourable terms and conditions, and it did not unfairly discriminate against any employee or group of employees. The Commission also concluded that the agreement had been made in good faith and met the better off overall test. The Commission approved the agreement based on the evidence provided and the legal criteria outlined in the Fair Work Act 2009.

The Commission approved the Coca-Cola Amatil (Aust) Pty Ltd - Enterprise Agreement 2020-2024, effective from 1 April 2020. The agreement now governs the terms and conditions of employment for employees in Coca-Cola Amatil's manufacturing operations in Western Australia. The approval ensures that employees will have fair and favourable terms and conditions of employment while allowing the company to operate efficiently.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established