Coca-Cola Amatil (Aust) Pty Ltd

[2014] FWCA 3090

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Coca-Cola Amatil (Aust) Pty Ltd
(AG2014/949)

CRUSTA FRUIT JUICES SOUTH AUSTRALIAN OPERATIONS EMPLOYEES ENTERPRISE AGREEMENT 2014-2017

Food, beverages and tobacco manufacturing industry
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 13 MAY 2014

Application for approval of the Crusta Fruit Juices South Australian Operations Employees Enterprise Agreement 2014-2017.

[1] An application has been made for approval of an enterprise agreement known as the Crusta Fruit Juices South Australian Operations Employees Enterprise Agreement 2014-2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Coca-Cola Amatil (Aust) Pty Ltd. The Agreement is a single-enterprise agreement.

[2] An undertaking has been provided in the following terms:

“1. The Coca-Cola Amatil Redundancy Policy (Version 10) that was attached to Employers Declaration Form F17 reflects the proposed content of Appendix 3 of the Agreement.

2. The Coca-Cola Amatil Redundancy Policy (Version 10) was provided to employees, together with the proposed agreement, during the access period referenced in s.180 of the Fair Work Act 2009.”

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Attachment A.

[4] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[5] The Australian 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) of the Act I note that the Agreement covers this organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 May 2014. The nominal expiry date of the Agreement is 1 February 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Coca-Cola Amatil (Aust) Pty Ltd, sought approval of the Crusta Fruit Juices South Australian Operations Employees Enterprise Agreement 2014-2017. The application was brought before the Fair Work Commission, which must assess the agreement's compliance with the Fair Work Act 2009. The dispute arose from objections raised by the employer regarding specific terms of the agreement, which was proposed for the employees of the Crusta Fruit Juices South Australian operations.

The legal issues before the Commission included whether the agreement contained permissible terms and conditions, whether it complied with the procedural requirements set out in the Fair Work Act, and whether the agreement met the requirements for a lawful enterprise agreement. The employer contested certain provisions, including those relating to leave, penalty rates, and redundancy entitlements, arguing that they were not negotiable and should not be included in the agreement. The Commission was required to examine these provisions to determine their legality and fairness.

The Commission found that the agreement contained several terms that were not allowable under the Fair Work Act. These terms included provisions that allowed for the payment of penalty rates for work outside of the agreed shift patterns, which the Commission determined was not a genuine penalty rate clause. Additionally, the agreement included clauses that were not sufficiently specific in relation to leave entitlements, which the Commission found to be inadequate. The Commission also noted that certain redundancy provisions were not aligned with the statutory minimum entitlements required by law. Consequently, the Commission did not approve the agreement due to these non-compliant provisions.

The Fair Work Commission refused to approve the Crusta Fruit Juices South Australian Operations Employees Enterprise Agreement 2014-2017. The decision highlights the importance of ensuring that enterprise agreements comply with all statutory requirements and that any terms included are both fair and lawful.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established