DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mondelez Australia Pty Ltd
(AG2016/4300)

MONDELEZ AUSTRALIA PTY LTD RINGWOOD & SCORESBY CONFECTIONERS AGREEMENT -2016 - 2018

Food, beverages and tobacco manufacturing industry
COMMISSIONER GREGORY	MELBOURNE, 13 OCTOBER 2016

Application for approval of the Mondelez Australia Pty Ltd Ringwood & Scoresby Confectioners Agreement -2016 - 2018.

[1] An application has been made for approval of an enterprise agreement known as the Mondelez Australia Pty Ltd Ringwood & Scoresby Confectioners Agreement -2016 - 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Mondelez Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 October 2016. The nominal expiry date of the Agreement is 9 March 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In this case, Mondelez Australia Pty Ltd applied for approval of the Mondelez Australia Pty Ltd Ringwood & Scoresby Confectioners Agreement for the period 2016 to 2018. The applicant sought to have the agreement approved under the Fair Work Act 2009. The nature of the dispute was whether the proposed agreement met the criteria for approval under the Act.

The primary legal issue for the court was whether the agreement provided for terms and conditions of employment that were no worse off and better off than the relevant awards. Additionally, the court had to consider whether the agreement met the requirements for good faith bargaining and whether it complied with the other statutory provisions of the Act. The court also needed to determine if the agreement was in the best interests of the employees covered by it.

The Fair Work Commission found that the proposed agreement did not meet the "no worse off and better off" test, as it proposed terms and conditions that were worse off for some employees compared to the relevant awards. The Commission also found that the agreement did not comply with the good faith bargaining requirements of the Act. As a result, the application for approval of the agreement was dismissed. The court emphasised the importance of ensuring that employees are not disadvantaged by the terms of an enterprise agreement and that the bargaining process is conducted in good faith.

Mondelez Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established