Huhtamaki Australia Pty Ltd

[2023] FWCA 3130

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Huhtamaki Australia Pty Ltd

(AG2023/3253)

HUHTAMAKI AUSTRALIA PTY LTD, FIBRE FOODSERVICE DIVISION, PRESTON PLANT, ENTERPRISE AGREEMENT, 2023

Manufacturing and associated industries
COMMISSIONER ALLISON	MELBOURNE, 28 SEPTEMBER 2023

Application for approval of the Huhtamaki Australia Pty Ltd, Fibre Foodservice Division, Preston Plant, Enterprise Agreement, 2023

An application has been made for approval of an enterprise agreement known as the Huhtamaki Australia Pty Ltd, Fibre Foodservice Division, Preston Plant, Enterprise Agreement, 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Huhtamaki Australia Pty Ltd. The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, which commenced operation on 6 June 2023. Given the notification time for the Agreement was 23 March 2023, the transitional arrangements for the Amending Act provide that the genuine agreement requirements in Part 2-4 of the Act as they stood just before 6 June 2023 apply to the present application. Further, as the Agreement was made on 1 September 2023 the better off overall test provisions in Part 2-4 of the Act as amended on 6 June 2023 apply.

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.

I note that clause 52(b), relating to employer superannuation contributions being paid to a specific superannuation fund, may be contrary to the Superannuation Guarantee (Administration) Act 1992 and therefore unenforceable.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The Construction, Forestry, Maritime, Mining and Energy Union, 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 5 October 2023. The nominal expiry date of the Agreement is 10 May 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of Huhtamaki Australia Pty Ltd, the applicant sought approval from the Fair Work Commission of an enterprise agreement. The agreement in question was between Huhtamaki Australia Pty Ltd, Fibre Foodservice Division, Preston Plant, and its employees. The nature of the dispute revolved around the terms and conditions of employment as outlined in the proposed enterprise agreement, including wages, hours of work, and other employment-related matters.

The legal issues before the court centred on whether the agreement complied with the relevant provisions of the Fair Work Act 2009. Specifically, the court needed to determine if the agreement met the requirements for "bargaining representative approval" and whether it complied with the "better off overall test." This test requires that employees be no worse off financially and, in most cases, better off overall than they would be under the applicable award or agreement.

The court reviewed the evidence and submissions from both parties, focusing on the fairness and compliance of the proposed agreement. It considered the bargaining positions of the parties, the negotiation process, and the terms of the agreement itself. The court found that the agreement was made in good faith and that the employees were better off overall. Consequently, the court approved the enterprise agreement, emphasising the importance of fair and effective workplace bargaining.

The final orders of the court were that the Huhtamaki Australia Pty Ltd, Fibre Foodservice Division, Preston Plant, Enterprise Agreement, 2023, was approved and registered with the Fair Work Commission. This decision ensures that the terms of the agreement are legally binding and enforceable between the parties.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established