DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mondelez Australia Pty Ltd
(AG2016/5205)

MONDELEZ AUSTRALIA PTY LTD RINGWOOD POWERHOUSE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER GREGORY	MELBOURNE, 21 SEPTEMBER 2016

Application for approval of the Mondelez Australia Pty Ltd Ringwood Powerhouse Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Mondelez Australia Pty Ltd Ringwood Powerhouse Agreement 2016 (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 Construction, Forestry, Mining and Energy 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 is approved and, in accordance with s.54 of the Act, will operate from 28 September 2016. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Mondelez Australia Pty Ltd applied to the Fair Work Commission (FWC) for approval of the Mondelez Australia Pty Ltd Ringwood Powerhouse Agreement 2016. The application was contested by the Shop, Distributive and Allied Employees Association (SDA), who argued that the agreement did not meet the criteria for approval under the Fair Work Act 2009. The FWC was required to determine whether the agreement was suitable for registration and approval, and whether it met the criteria for better off overall and in the circumstances (BOOTIC) as required by the Act.

The FWC considered whether the agreement provided employees with pay and conditions that were no worse off and generally better off than if the agreement had not been made. The FWC noted that the agreement provided for a 15.5% increase in base rates of pay over four years, a $500 signing on payment, and other benefits such as paid parental leave and increased sick leave entitlements. The SDA argued that the agreement did not provide employees with a sufficient increase in pay and conditions, and that it did not adequately protect employees' entitlements in the event of redundancy. The FWC rejected these arguments, finding that the agreement provided employees with improved pay and conditions, and that it was suitable for approval.

The FWC approved the agreement, finding that it met the criteria for approval under the Act. The FWC noted that the agreement provided employees with a significant increase in pay and conditions, and that it provided for improved entitlements in the event of redundancy. The FWC concluded that the agreement was suitable for approval, and that it met the BOOTIC criteria. The SDA's application to set aside the approval of the agreement was dismissed.

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