DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mondelez Australia Pty Ltd
(AG2018/1379)

MONDELEZ AUSTRALIA PTY LTD RINGWOOD AND SCORESBY ELECTRICIANS CONFECTIONERY OPERATIONS VICTORIA AGREEMENT 2017

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 20 JUNE 2018

Application for approval of the Mondelez Australia Pty Ltd Ringwood and Scoresby Electricians Confectionery Operations Victoria Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Mondelez Australia Pty Ltd Ringwood and Scoresby Electricians Confectionery Operations Victoria Agreement 2017 (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] I observe the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• Clause 10.6(a) – redundancy pay; and

• Clause 16 – annual leave, which provides that “where a holiday or holidays fall in a period of annual leave and the employee, fails, without reasonable cause, to attend for work on the employees next working day immediately after the last day of the period of annual leave, the employee shall not be entitled to be paid for the holiday or holidays”.

However, noting clause 5(f) of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 June 2018. The nominal expiry date of the Agreement is 31 December 2020.

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 for approval of an enterprise agreement. The applicant is a confectionery manufacturer, and the dispute involves the proposed agreement for electricians working at the Ringwood and Scoresby factories in Victoria. The legal issues before the Commission were whether the agreement provided for the mandatory matters set out in the Fair Work Act 2009 and whether it complied with the good faith bargaining requirement. The Commission considered whether the agreement adequately covered the stipulated mandatory terms, including remuneration, classification of employees, and other employment conditions. Additionally, the Commission assessed whether the bargaining process adhered to the principles of good faith, including the necessity for genuine negotiations and the absence of coercion or pressure.

The Commission found that the proposed agreement met the requirements of the Act by including all the mandatory matters and addressing them comprehensively. The applicant had demonstrated that the agreement was the result of genuine negotiations and was not the product of any pressure or coercion. The Commission emphasised that the negotiations were conducted in a manner that allowed for meaningful discussions and that both parties had an opportunity to contribute to the terms of the agreement. Consequently, the Commission was satisfied that the agreement was approved in good faith and met all statutory requirements.

In light of the findings, the Fair Work Commission approved the Mondelez Australia Pty Ltd Ringwood and Scoresby Electricians Confectionery Operations Victoria Agreement 2017. The Commission determined that the agreement was fair and reasonable, meeting all legislative criteria, and was a genuine outcome of the bargaining process. The approval was granted, and the agreement came into effect as per its terms.

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