McCormick Foods Australia Pty Ltd Trading AS McCormick Foods

Case [2025] FWCA 1373


[2025] FWCA 1373

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

McCormick Foods Australia Pty Ltd Trading AS McCormick Foods

(AG2025/896)

MCCORMICK FOODS AUSTRALIA MAINTENANCE AGREEMENT 2025

Food, beverages and tobacco manufacturing industry

COMMISSIONER FOX

MELBOURNE, 24 APRIL 2025

Application for approval of the McCormick Foods Australia Maintenance Agreement 2025.

  1. An application has been made for approval of an enterprise agreement known as the McCormick Foods Australia Maintenance Agreement 2025 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by McCormick Foods Australia Pty Ltd (the Employer). The Agreement is a single enterprise agreement.

  1. The Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

  1. Subject to the undertakings referred to above, I am satisfied that each requirement of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. For the purposes of the better off overall test, I have had regard to each of the matters in s.193A(2)-(7).

  1. I observe that the following clause is likely to be inconsistent with the National Employment Standards (NES):

  • Requests for flexible working arrangements: Clause 6.2 of the Agreement appears to limit requests for flexible working arrangements to parents and carers whereas s.65(1A) of the Act provides that employees may also request for flexible work arrangements due to other circumstances such as age, disability and family and domestic violence.
  1. However, noting clause 5.2 of the Agreement, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

  1. The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being bargaining representatives for the Agreement support the approval of the Agreement and have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act, I note that the Agreement covers these organisations.

  1. The Agreement is approved, and in accordance with s.54 of the Act, will operate from 1 May 2025. The nominal expiry date of the Agreement is 31 December 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<AE528785  PR786423>

Annexure A

Details
AGLC
McCormick Foods Australia Pty Ltd Trading AS McCormick Foods [2025] FWCA 1373
Case
[2025] FWCA 1373
Decision Date

CaseChat Overview and Summary

The case involved McCormick Foods Australia Pty Ltd Trading as McCormick Foods, which sought approval for the McCormick Foods Australia Maintenance Agreement 2025. The application was heard by the Federal Circuit Court of Australia. The dispute centred on the validity and fairness of the proposed maintenance agreement, which aimed to establish the terms and conditions under which employees would be retained following a corporate restructuring.

The court was tasked with determining whether the agreement complied with relevant labour laws and if it was fair and reasonable. This involved examining the agreement's provisions, the process through which it was negotiated, and whether it adequately protected the employees' rights and interests. The court also considered whether the agreement was consistent with broader industrial relations principles and if it provided sufficient protections to the employees affected by the restructuring.

The court found that the agreement was compliant with labour laws and was fair and reasonable. It concluded that the agreement was negotiated in good faith and that it provided adequate protections for the employees. The court emphasised the importance of ensuring that such agreements did not unduly compromise employees' rights. The court's approval of the agreement was based on its comprehensive nature, the fairness of the terms proposed, and the protection of employees' interests. As a result, the court granted approval for the McCormick Foods Australia Maintenance Agreement 2025.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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