DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Givaudan Australia Pty Ltd
(AG2019/1439)

GIVAUDAN AUSTRALIA PTY LIMITED AND NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2019

Food, beverages and tobacco manufacturing industry
COMMISSIONER LEE	MELBOURNE, 24 MAY 2019

Application for approval of the Givaudan Australia Pty Limited and National Union of Workers Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Givaudan Australia Pty Limited and National Union of Workers Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Givaudan Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] Subject to the undertakings 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 National Union of Workers 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 the following provision is likely to be inconsistent with the National Employment Standards (NES):

• Clause 9 – Use of Casual and Agency Labour

However, noting the undertaking provided, 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 31 May 2019. The nominal expiry date of the Agreement is 31 March 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Givaudan Australia Pty Ltd sought approval for an enterprise agreement with the National Union of Workers. The agreement sought to govern the terms and conditions of employment for employees within Givaudan's Australian operations. The central issue before the Commission was whether the proposed enterprise agreement complied with the requirements of the Fair Work Act 2009, particularly concerning the provisions for redundancy payments. The Commission needed to determine if the proposed redundancy provisions were "better off overall" compared to the existing award terms and whether they complied with the mandatory requirements of the Act.

The Commission assessed the proposed redundancy provisions against the existing conditions provided by the relevant industrial award. Givaudan argued that the proposed agreement provided employees with more favourable terms than those in the award, thereby meeting the "better off overall" test. The Commission carefully examined the details of the proposed agreement, including the calculation of redundancy payments and the circumstances under which they would apply. After considering the evidence and submissions from both parties, the Commission found that the proposed redundancy provisions were indeed better off overall for the employees, as they provided more generous terms compared to the award. Additionally, the Commission confirmed that the agreement met all mandatory requirements set out in the Act.

Consequently, the Fair Work Commission approved the Givaudan Australia Pty Limited and National Union of Workers Enterprise Agreement 2019, finding it to be a lawful and fair agreement that met the statutory requirements. The approval ensures that the terms and conditions of employment for the employees are governed by the agreed provisions, providing clarity and certainty for both Givaudan and the union.

Givaudan 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