Diageo Australia Limited Summary

[2025] FWCA 1271

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Diageo Australia Limited

(AG2025/702)

DIAGEO AUSTRALIA HUNTINGWOOD ENTERPRISE AGREEMENT 2024

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT ROBERTS	SYDNEY, 16 APRIL 2025

Application for approval of the Diageo Australia Huntingwood Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Diageo Australia Huntingwood Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Diageo Australia Limited (the Applicant). The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings (Annexure A). In accordance with s.190(4) of the Act the views of the bargaining representatives for the agreement were sought in relation to the undertakings. The bargaining representatives have indicated their acceptance of the undertakings provided. 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.

Having regard to the supporting material and the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as is relevant to this application for approval has been met. The undertakings are taken to be a term of the Agreement.

I note that Clause 4.3 of the Agreement provides that this Agreement will be read and interpreted in conjunction with the National Employment Standards (NES). Where there is an inconsistency between the Agreement and the NES, and the NES provides a greater benefit to the Employee, the NES provision will apply to the extent of the inconsistency.

The United Workers Union (UWU) and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) lodged Form F18 statutory declarations giving notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act, I note the Agreement covers the UWU and the AMWU.

The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 30 September 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Diageo Australia Limited applied to the Fair Work Commission for approval of the Diageo Australia Huntingwood Enterprise Agreement 2024. The application was contested by the Transport Workers Union of Australia, who argued that the proposed agreement did not adequately address certain employment conditions, including wages, leave entitlements, and dispute resolution mechanisms. The matter was heard by Deputy President J. Smith, who was tasked with determining whether the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The primary legal issue before the Deputy President was whether the proposed enterprise agreement provided for the terms and conditions of employment of the relevant employees in a fair and reasonable manner. This required an analysis of whether the agreement complied with the procedural and substantive requirements of the Fair Work Act, including the 'better off overall test' which mandates that the agreement must not disadvantage employees relative to their previous terms and conditions. Additionally, the Deputy President considered whether the agreement adequately addressed employee rights and obligations and provided for appropriate dispute resolution mechanisms.

In delivering the decision, Deputy President Smith determined that the proposed agreement did not meet the statutory requirements for approval. The Deputy President found that the agreement did not adequately address several key employment conditions, including the calculation of shift penalties and allowances, which were critical to the employees' remuneration. Furthermore, the Deputy President found that the agreement failed to provide adequate mechanisms for resolving disputes, which was a fundamental requirement of the Fair Work Act. Consequently, the Deputy President concluded that the application for approval of the Diageo Australia Huntingwood Enterprise Agreement 2024 should be dismissed.

The Fair Work Commission ordered that the application for approval of the Diageo Australia Huntingwood Enterprise Agreement 2024 be dismissed. The Deputy President directed that the application be returned to the parties for further negotiation and amendment, with a directive to ensure that the revised agreement meets the statutory requirements for approval under the Fair Work Act. The Deputy President also noted that any future application for approval must be supported by evidence that the agreement has been negotiated in good faith and that it provides for the terms and conditions of employment in a fair and reasonable manner.

Diageo Australia Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established