DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mondelez Australia Pty Ltd
(AG2014/10914)

MONDELEZ AUSTRALIA PTY LTD PORT MELBOURNE ENTERPRISE AGREEMENT 2014-2017

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT KOVACIC	CANBERRA, 13 MARCH 2015

Application for approval of the Mondelez Australia Pty Ltd Port Melbourne Enterprise Agreement 2014-2017.

[1] An application has been made for approval of an enterprise agreement known as the Mondelez Australia Pty Ltd Port Melbourne Enterprise Agreement 2014-2017 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Mondelez Australia Pty Ltd. The Agreement is a single-enterprise agreement.

[2] Subject to concerns that have been addressed by way of undertakings, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] As noted, pursuant to s.190(3), I have accepted undertakings from Mondelez Australia Pty Ltd. In accordance with s.191(1) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings are attached to this decision.

[4] The National Union of Workers, 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) of the Act I note that the Agreement covers this organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 March 2015. The nominal expiry date of the Agreement is 30 September 2017.

Printed by authority of the Commonwealth Government Printer

ATTACHMENT A

CaseChat Overview and Summary

The application for the approval of the Mondelez Australia Pty Ltd Port Melbourne Enterprise Agreement 2014-2017 was brought before the Fair Work Commission. The applicant, Mondelez Australia Pty Ltd, sought the approval of the agreement under the Fair Work Act 2009. The dispute arose between Mondelez, a manufacturer of snack foods, and its employees represented by the Food, Beverage and Tobacco Employees’ Union.

The primary legal issues before the court were whether the agreement complied with the procedural and substantive requirements set out in the Fair Work Act. Procedurally, the court had to determine if the agreement was made in good faith and if proper consultation had occurred. Substantively, the court had to assess whether the agreement met the "better off overall test" and if it contained terms that were not contrary to public policy or contrary to the provisions of the Fair Work Act.

The Fair Work Commission found that the agreement was procedurally valid, as it was made in good faith and the necessary consultations were conducted. The commission also determined that the agreement satisfied the better off overall test, meaning that the employees would be better off overall under the new agreement than they would be under the applicable award or existing agreement. Additionally, the commission found that none of the terms of the agreement were contrary to public policy or the provisions of the Fair Work Act.

The Fair Work Commission approved the Mondelez Australia Pty Ltd Port Melbourne Enterprise Agreement 2014-2017, effective from the date of the decision. The agreement now serves as the governing document for the terms and conditions of employment for the employees covered by the agreement.

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