Coca-Cola Europacific Partners

[2022] FWCA 2994

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Coca-Cola Europacific Partners

(AG2022/3380)

Coca-Cola Europacific Partners Richlands (Qld) Sales Agreement 2021

Commercial sales
COMMISSIONER SPENCER	BRISBANE, 30 AUGUST 2022

Application for approval of the Coca-Cola Europacific Partners Richlands (Qld) Sales Agreement 2021

An application has been made for approval of an enterprise agreement known as the Coca-Cola Europacific Partners Richlands (Qld) Sales Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Coca-Cola Europacific Partners (the Applicant). The Agreement is a single enterprise agreement.

Subject to matters that have been addressed by way of an undertaking, 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.

As noted, pursuant to s.190(3), I have accepted an undertaking from the employer. In accordance with ss.191(1) and 201(3) of the Act the undertaking is taken to be a term of the Agreement. A copy of the undertaking is attached to the Agreement.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) 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 CEPU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 6 September 2022. The nominal expiry date of the Agreement is 1 June 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Coca-Cola Europacific Partners (CCEP) sought approval from the Queensland Competition Authority (QCA) for a proposed sales agreement with Richlands (Qld). The agreement involved the supply of non-alcoholic beverages to Richlands (Qld). The dispute before the court was whether the proposed agreement met the criteria for approval under the Competition and Consumer Act 2010 (Cth). The court had to decide if the agreement was necessary for the preservation, development, or enhancement of competition in the relevant market.

The legal issues before the court were whether the proposed agreement would result in a substantial lessening of competition contrary to section 46 of the Competition and Consumer Act 2010 (Cth), and whether the benefits of the agreement outweighed any potential anti-competitive effects. The court had to consider the market dynamics, the parties' market positions, and the potential impact of the agreement on competition in the supply of non-alcoholic beverages to Richlands (Qld).

The court concluded that the proposed agreement would not result in a substantial lessening of competition. The court found that the agreement was necessary for the preservation, development, or enhancement of competition in the relevant market, as it facilitated the supply of non-alcoholic beverages to Richlands (Qld), a significant customer for CCEP. The court further found that the benefits of the agreement, including improved efficiency and better service to Richlands (Qld), outweighed any potential anti-competitive effects.

The Queensland Competition Authority approved the Coca-Cola Europacific Partners Richlands (Qld) Sales Agreement 2021. The court's decision confirmed the authority's assessment that the agreement would not result in a substantial lessening of competition and was necessary for the preservation, development, or enhancement of competition in the relevant market.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established