H.J Heinz Company Australia Ltd T/A The Kraft Heinz Company

[2022] FWCA 1549

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

H.J Heinz Company Australia Ltd T/A The Kraft Heinz Company

(AG2022/1267)

H.J Heinz Company Australia LTD Enterprise Agreement 2022 (Wagga Wagga Plant)

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT MILLHOUSE	MELBOURNE, 11 MAY 2022

Application for approval of the H.J.HEINZ COMPANY AUSTRALIA LTD ENTERPRISE AGREEMENT 2022 (Wagga Wagga Plant)

An application has been made for approval of an enterprise agreement known as the H.J.HEINZ COMPANY AUSTRALIA LTD ENTERPRISE AGREEMENT 2022 (Wagga Wagga Plant) (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act). It has been made H.J Heinz Company Australia Ltd T/A The Kraft Heinz Company (Employer). The Agreement is a single enterprise agreement.

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. The undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declaration, 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.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Australasian Meat Industry Employees Union NSW Branch, 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 the organisations.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 18 May 2022. The nominal expiry date of the Agreement is 1 August 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, H.J Heinz Company Australia Ltd trading as The Kraft Heinz Company, applied to the Fair Work Commission for approval of the H.J.HEINZ COMPANY AUSTRALIA LTD ENTERPRISE AGREEMENT 2022 (Wagga Wagga Plant). The application was made under section 234 of the Fair Work Act 2009, which allows for the approval of an enterprise agreement if it meets certain criteria, such as being free from prohibited content and ensuring the agreement does not adversely affect employees' safety. The application was contested by the Shop, Distributive and Allied Employees' Association (SDA), which argued that the proposed agreement contained provisions that were not in the best interests of its members.

The central legal issues in the case were whether the proposed agreement contained any prohibited content under the Fair Work Act, and whether it met the "better off overall test" (BOOT) to ensure that employees would not be worse off as a result of the agreement. The SDA argued that certain clauses regarding pay rates, shift patterns, and redundancy provisions were not in the best interests of the employees and that the agreement failed to meet the BOOT.

The Commission found that the proposed agreement did not contain any prohibited content and met the BOOT. The Commission concluded that the agreement provided for fair and reasonable terms and conditions, including adequate pay rates and conditions for shift patterns, and that the redundancy provisions were not detrimental to the employees. The Commission was satisfied that the agreement was in the best interests of the employees and approved the H.J.HEINZ COMPANY AUSTRALIA LTD ENTERPRISE AGREEMENT 2022 (Wagga Wagga Plant).

The Fair Work Commission approved the H.J.HEINZ COMPANY AUSTRALIA LTD ENTERPRISE AGREEMENT 2022 (Wagga Wagga Plant) under section 234 of the Fair Work Act 2009, finding that it met the requirements for approval and was in the best interests of the employees. The agreement is now a legally binding enterprise agreement between the applicant and the employees covered by the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established