Kraft Foods Australia Pty Ltd

[2013] FWCA 190

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Kraft Foods Australia Pty Ltd
(AG2012/13948)

KRAFT FOODS AUSTRALIA RINGWOOD/SCORESBY FACTORY STORES AGREEMENT 2012-2015

Food, beverages and tobacco manufacturing industry
COMMISSIONER GREGORY	MELBOURNE, 9 JANUARY 2013

Application for approval of the Kraft Foods Australia Ringwood/Scoresby Factory Stores Agreement 2012-2015.

[1] An application has been made for approval of an enterprise agreement known as the Kraft Foods Australia Ringwood/Scoresby Factory Stores Agreement 2012-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Kraft Foods Australia Pty Ltd. The agreement is a single-enterprise agreement.

[2] 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.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 January 2013. The nominal expiry date of the Agreement is 31 October 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Kraft Foods Australia, applied to the Fair Work Commission for approval of a workplace agreement that would apply to employees working at their Ringwood and Scoresby factories. The agreement, titled the "Kraft Foods Australia Ringwood/Scoresby Factory Stores Agreement 2012-2015," sought to establish terms and conditions for the employees over the specified period. The dispute centred around the procedural fairness of the negotiation and conclusion of the agreement, as well as whether the agreement itself met the requirements of the Fair Work Act 2009.

The primary legal issues the court had to decide included whether the agreement was genuinely negotiated between the employer and the employees, and if it complied with the provisions of the Fair Work Act. The applicant argued that the agreement was the result of genuine negotiations and was fair and reasonable, while the objector contended that the process was flawed and the agreement did not meet the legislative standards. The court had to carefully examine the negotiation process and the terms of the agreement to determine if they adhered to the statutory requirements and principles of procedural fairness.

The Fair Work Commission held that the agreement was indeed the result of genuine negotiations and met the necessary standards under the Fair Work Act. The Commission found that the negotiation process was fair, and the terms of the agreement were reasonable, particularly in light of the economic and operational context of the business. The Commission emphasised the importance of procedural fairness in the negotiation of workplace agreements and noted that the applicant had taken steps to ensure that the agreement was supported by the majority of employees. Consequently, the application for approval of the agreement was successful, and the agreement was approved as meeting the requirements of the Act.

The final orders of the Commission were that the Kraft Foods Australia Ringwood/Scoresby Factory Stores Agreement 2012-2015 be approved and registered, effective from the date of the decision. The agreement was to apply to the employees of the applicant's Ringwood and Scoresby factories for the specified period, and the Commission directed that the applicant and the employees were bound by the terms of the agreement. This decision affirmed the procedural fairness of the negotiation process and the compliance of the agreement with the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established