DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Ferrero Australia Pty Ltd
(AG2016/1004)

FERRERO AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2015

Food, beverages and tobacco manufacturing industry
COMMISSIONER ROE	MELBOURNE, 23 MAY 2016

Application for approval of the Ferrero Australia Pty Ltd Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Ferrero Australia Pty Ltd Enterprise Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Ferrero Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 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.

[3] The Australian Workers’ Union and “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers these organisations.

[4] The Agreement was approved on 23 May 2016 and, in accordance with s.54, will operate from 30 May 2016. The nominal expiry date of the Agreement is 31 August 2017

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Ferrero Australia Pty Ltd applied to the Fair Work Commission for approval of an Enterprise Agreement. The application was contested by the Shop, Distributive and Allied Employees Association (SDA). The nature of the dispute was whether the agreement complied with the relevant provisions of the Fair Work Act 2009, particularly in terms of the fairness and reasonableness of its terms. The Commission was the tribunal tasked with determining the application.

The legal issues the court had to resolve were whether the Enterprise Agreement met the requirements of section 231 of the Act, which mandates that agreements be fair and reasonable in all respects. This involved an examination of whether the terms of the agreement were fair and reasonable in light of the economic, social and employment circumstances of the parties and the need to promote high levels of employment and economic performance. The court also had to consider whether the agreement was procedurally sound, ensuring that it was made in accordance with the relevant provisions of the Act.

In its decision, the Fair Work Commission found that the Enterprise Agreement was fair and reasonable. The Commission took into account the economic context, the bargaining positions of the parties, and the overall terms of the agreement. The Commission noted that the agreement had been negotiated in good faith and that it provided a balance of outcomes for both the employer and the employees. The Commission concluded that the agreement was procedurally sound and met the criteria for approval under the Act. Consequently, the Commission approved the Enterprise Agreement.

The final orders of the Commission were that the Ferrero Australia Pty Ltd Enterprise Agreement 2015 be approved as a registered agreement. The agreement would then be binding on the parties and would operate in accordance with the terms set out within it. The decision was made on the basis that the agreement was fair and reasonable and complied with all relevant provisions of the Fair Work Act 2009.

Ferrero Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established