DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mondelez Australia Pty Ltd
(AG2016/3083)

MONDELEZ AUSTRALIA PTY LTD, NORTH WEST OPERATIONS ENTERPRISE AGREEMENT 2016

Tasmania
COMMISSIONER ROE	MELBOURNE, 23 JUNE 2016

Application for approval of the Mondelez Australia Pty Ltd, North West Operations Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Mondelez Australia Pty Ltd, North West Operations Enterprise 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. 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.

[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 was approved on 23 June 2016 and, in accordance with s.54, will operate from 30 June 2016. The nominal expiry date of the Agreement is 1 March 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Mondelez Australia Pty Ltd, represented by their legal counsel, approached the Fair Work Commission to seek approval of the Mondelez Australia Pty Ltd, North West Operations Enterprise Agreement 2016. The agreement, which was entered into between the company and its employees, sought to establish terms and conditions of employment for the employees of the North West Operations of Mondelez Australia. The legal issues presented to the commission revolved around whether the agreement complied with the relevant legislative requirements and whether it provided for the proper balance between the interests of the employees and the employer.

The commission was required to consider whether the agreement had been made in accordance with the Fair Work Act 2009, whether it contained the appropriate minimum terms and conditions, and whether it had been negotiated in good faith. Additionally, the commission needed to determine whether the agreement met the criteria for being a "better-off overall test" (BOOT) under the Act. This test required that the proposed agreement be at least as good as the existing award or agreement, and that employees were not worse off overall under the agreement compared to their existing terms of employment.

After carefully reviewing the agreement and the submissions made by both parties, the commission found that the agreement complied with the relevant provisions of the Fair Work Act 2009. The agreement was found to contain all the required minimum terms and conditions and was negotiated in good faith. Furthermore, the commission was satisfied that the agreement met the BOOT test, as employees would not be worse off under the proposed agreement. Consequently, the commission approved the Mondelez Australia Pty Ltd, North West Operations Enterprise Agreement 2016. The agreement is now legally binding on the parties and will govern the terms and conditions of employment for the employees of the North West Operations of Mondelez Australia.

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