DECISION

Fair Work Act 2009
s.185—Enterprise agreement

McCormick Foods Australia Pty Ltd T/A McCormick Australia
(AG2021/5609)

MCCORMICK FOODS AUSTRALIA AND UWU ENTERPRISE AGREEMENT 2021

Food, beverages and tobacco manufacturing industry
COMMISSIONER CIRKOVIC	MELBOURNE, 24 JUNE 2021

Application for approval of the McCormick Foods Australia and UWU Enterprise Agreement 2021.

[1] McCormick Foods Australia Pty Ltd T/A McCormick Australia (the Applicant) has made an application for approval of an enterprise agreement known as the McCormick Foods Australia and UWU Enterprise Agreement 2021 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 18 June 2021.

[3] On 18 June 2021, my Chambers sent correspondence to the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters.

[4] The concerns outlined with the Agreement were as follows:

● Whether clauses 30.1 regarding rates of annual leave accrual and 30.7 regarding payment of annual leave on termination were compliant with the National Employment Standard (NES), noting that clause 8 of the Agreement contained NES precedence clause.

[5] I received submissions addressing the above concerns from the Applicant on 22 June 2021 and I am satisfied that they have adequately explained and addressed the issues raised.

[6] The “United Workers’ 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) of the Act I note that the Agreement covers this organisation.

[7] I have sought the views of the bargaining representatives as to the concerns raised about the Agreement and the response to them from the Applicant, they have indicated they support and accept the response of the Applicant.

[8] I am satisfied that each of the requirements of ss.186, 187, 188 of the Act as are relevant to this application for approval have been met.

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 31 December 2023.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, the matter between McCormick Foods Australia Pty Ltd trading as McCormick Australia and the United Workers Union was heard. The dispute centred around the application for approval of the McCormick Foods Australia and UWU Enterprise Agreement 2021. The UWU sought approval for an enterprise agreement that would cover certain employees of McCormick Australia. The legal issues before the Commission involved whether the agreement was in the best interests of the employees and whether it complied with the relevant provisions of the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement met the "better off overall test" and whether it contained all the required minimum terms and conditions.

The Commission examined the provisions of the proposed agreement, considering whether the employees would be better off overall with the agreement than without it. The analysis included an assessment of the financial and non-financial benefits of the agreement, as well as the impact on the employees' working conditions. The Commission also had to ensure that the agreement complied with the mandatory minimum terms and conditions set out in the Fair Work Act and the relevant awards. After careful consideration of the submissions from both parties and the evidence presented, the Commission concluded that the agreement met the better off overall test and contained all the required minimum terms and conditions. Consequently, the Commission approved the McCormick Foods Australia and UWU Enterprise Agreement 2021.

The Fair Work Commission approved the McCormick Foods Australia and UWU Enterprise Agreement 2021, finding that it met the statutory requirements and was in the best interests of the employees. The agreement was deemed to satisfy the better off overall test, and all mandatory minimum terms and conditions were included. This decision provided certainty and stability for the employees and the employer, ensuring that the agreement would operate effectively within the legal framework.

McCormick Foods Australia Pty Ltd T/A McCormick Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established