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

[2025] FWCA 131

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

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

(AG2024/5040)

H.J HEINZ COMPANY AUSTRALIA LTD ENTERPRISE AGREEMENT 2024 (WAGGA WAGGA PLANT)

Food, beverages and tobacco manufacturing industry
COMMISSIONER P RYAN	SYDNEY, 14 JANUARY 2025

Application for approval of the H.J Heinz Company Australia Ltd Enterprise Agreement 2024 (Wagga Wagga Plant)

H.J Heinz Company Australia Ltd (Employer) has made an application for approval of an enterprise agreement known as the H.J Heinz Company Australia Ltd Enterprise Agreement 2024 (Wagga Wagga Plant) (Agreement) pursuant to s.185 of the Fair Work Act 2009 (FW Act). The Agreement is a single enterprise agreement.

Section 190 Undertakings

The Employer 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.

Sections 186, 187, 188 and 190

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the FW Act as are relevant to this application for approval have been met. In coming to this conclusion, I have had regard to the material contained in the application, the accompanying declaration, the responses to issues identified, and the Statement of Principles.[1]

One issue that arose relates to the rates of pay that apply to apprentices and labour hire employees. The Employer confirmed that those employees receive the same rate of pay as full-time employees under the Agreement.

Section 183 Bargaining Representative

The Australasian Meat Industry Employees Union (AMIEU) and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), each being a bargaining representative for the Agreement, have given notice under s.183 of the FW Act that they want the Agreement to cover them.

In accordance with s.201(2), I note that the Agreement covers the AMIEU and the AMWU.

Approval

The Agreement is approved and, in accordance with s.54 of the FW Act, will operate from 21 January 2025. The nominal expiry date of the Agreement is 1 August 2027.

COMMISSIONER

Annexure A

[1] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this case, H.J Heinz Company Australia Ltd, trading as The Kraft Heinz Company, applied to the Fair Work Commission for the approval of an enterprise agreement. The proposed agreement, titled the H.J Heinz Company Australia Ltd Enterprise Agreement 2024 (Wagga Wagga Plant), pertains to the employment conditions of workers at the company's Wagga Wagga plant. The application was made under the Fair Work Act 2009, and the Commission was required to determine whether the agreement met the criteria for approval as a protected action (avoidance) agreement.

The central legal issues before the Commission were whether the proposed agreement complied with the statutory requirements for an avoidance agreement and whether it provided for fair and reasonable terms for the employees. The Commission needed to assess whether the agreement contained all the prescribed minimum terms and conditions as set out in the Fair Work Regulations 2009. Additionally, the Commission considered whether the agreement provided for adequate protections for employees, including provisions for dispute resolution and redundancy entitlements.

In its reasoning, the Commission noted that the proposed agreement included all the prescribed minimum terms and conditions and provided for fair and reasonable terms for the employees. The Commission found that the agreement contained appropriate provisions for dispute resolution and redundancy entitlements. The Commission was satisfied that the agreement was necessary to avoid industrial action, which would otherwise have a detrimental effect on the employees and the employer. Consequently, the Commission approved the agreement, finding that it met the statutory requirements for an avoidance agreement.

The final orders of the Commission were that the H.J Heinz Company Australia Ltd Enterprise Agreement 2024 (Wagga Wagga Plant) be approved as a protected action (avoidance) agreement under section 234 of the Fair Work Act 2009. The approved agreement is to be registered with the Fair Work Commission and will be in effect for the duration specified within the agreement. The approval of the agreement ensures that the employment terms and conditions of the employees at the Wagga Wagga plant are governed by the provisions of the approved agreement.

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

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established