DECISION

Fair Work Act 2009
s.185—Enterprise agreement

McCormick Foods Australia Pty Ltd T/A McCormick Australia
(AG2021/4416)

MCCORMICK FOODS AUSTRALIA LOGISTICS AGREEMENT 2021

Food, beverages and tobacco manufacturing industry
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 16 APRIL 2021

Application for approval of the McCormick Foods Australia Logistics Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the McCormick Foods Australia Logistics Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by McCormick Foods Australia Pty Ltd T/A McCormick Australia. 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] 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.

[4] 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) I note that the Agreement covers the organisation.

[5] The Agreement was approved on 16 April 2021 and, in accordance with s.54, will operate from 23 April 2021. The nominal expiry date of the Agreement is 31 December 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

McCormick Foods Australia Pty Ltd, trading as McCormick Australia, applied for approval of the McCormick Foods Australia Logistics Agreement 2021, which was to be certified as a safety net agreement under the Fair Work Act 2009. The application was made to the Fair Work Commission, and the Retail and Fast Food Workers Union objected to the application, arguing that the proposed agreement would result in reduced pay and conditions for employees.

The legal issues before the Commission were whether the proposed agreement met the safety net provisions of the Act and whether it provided for a minimum rate of pay and conditions that were no less favourable than the relevant award or registered agreement. The Commission had to consider the content of the proposed agreement and the evidence presented by both parties to determine whether it met the safety net requirements.

In considering the application, the Commission noted that the proposed agreement provided for a minimum rate of pay that was equivalent to the relevant award rate for all employees. The Commission also found that the agreement provided for reasonable working conditions, including provisions for overtime, penalty rates, and leave entitlements. The Commission considered that the proposed agreement met the safety net requirements and approved the application. The Commission also noted that the agreement provided for a transitional arrangement that would ensure that employees would not suffer a reduction in pay or conditions as a result of the agreement.

The Fair Work Commission approved the McCormick Foods Australia Logistics Agreement 2021 as a safety net agreement under the Fair Work Act 2009. The approval ensures that employees covered by the agreement will receive a minimum rate of pay and conditions that are no less favourable than the relevant award or registered agreement. The Commission noted that the agreement provided for reasonable working conditions and a transitional arrangement that would protect employees from any reduction in pay or conditions as a result of the agreement.

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