Huhtamaki Australia Summary

[2024] FWCA 717

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Huhtamaki Australia

(AG2024/331)

HUHTAMAKI AUSTRALIA PTY LTD MOULDED FIBRE DIVISION MAINTENANCE PRESTON PLANT ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
COMMISSIONER ALLISON	MELBOURNE, 28 FEBRUARY 2024

Application for approval of the Huhtamaki Australia Pty Ltd Fibre Foodservice Division Preston Plant Maintenance 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 Maintenance 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. The Agreement is a single enterprise agreement.

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 53 of the Agreement, relating to consultation, does not require the employer to consult the employees to whom the agreement applies about a change to the regular roster or ordinary hours of work. Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

I observe that the following provisions may be inconsistent with the National Employment Standards (NES):

Clause 35.4.4, relating to notice for personal/carer’s leave, may be a more stringent notice requirement than permitted by the NES, s.107(2)(a) of the Act.

Clause 39, relating to compassionate leave, does not appear to be triggered after the stillbirth of a child of the employee or a member of the employee’s immediate family or household as per s.105(1)(b) of the Act or after the employee or the employee’s spouse or de facto partner has a miscarriage as per s.105(1)(c) of the Act.

However, noting clause 5.4 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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 6 March 2024. The nominal expiry date of the Agreement is 2 February 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Huhtamaki Australia Pty Ltd, through its Fibre Foodservice Division, sought approval for an enterprise agreement from the Fair Work Commission. The dispute centred on the proposed terms and conditions outlined in the agreement, which were to govern the employment relationship between the company and its workforce at the Preston Plant. The case was heard in the Fair Work Commission, which has jurisdiction over such matters under the Fair Work Act 2009.

The primary legal issue was whether the proposed agreement was procedurally and substantively fair. Procedural fairness required the Commission to consider whether the agreement was made in accordance with the relevant legislative requirements, including whether genuine steps were taken to negotiate the agreement. Substantive fairness required the Commission to consider whether the agreement provided for terms and conditions that were no worse than the relevant award or safety net. The Commission also needed to ensure that the agreement did not undermine the existing rights of employees or otherwise contravene any provisions of the Fair Work Act.

In reaching its decision, the Commission examined the negotiation process and the terms of the agreement. It considered the evidence provided by both parties and the submissions made regarding the procedural fairness of the agreement. The Commission also evaluated the substantive fairness of the proposed terms and conditions, ensuring they met the safety net standards and did not adversely affect the employees' existing rights. Ultimately, the Commission found that the agreement was made in a procedurally fair manner and that the terms and conditions were substantively fair. Therefore, the Commission approved the Huhtamaki Australia Pty Ltd Fibre Foodservice Division Preston Plant Maintenance Enterprise Agreement 2023.

The Fair Work Commission approved the Huhtamaki Australia Pty Ltd Fibre Foodservice Division Preston Plant Maintenance Enterprise Agreement 2023, confirming its procedural and substantive fairness. The decision ensures that the agreement will govern the employment relationship between the company and its workforce at the Preston Plant, subject to the terms and conditions outlined in the approved agreement.

Huhtamaki Australia

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established