Mondelez Australia Pty Ltd T/A Mondelez International Summary

[2022] FWCA 3527

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Mondelez Australia Pty Ltd T/A Mondelez International

(AG2022/3962)

Mondelēz Australia Pty Ltd, Claremont Operations Maintenance Enterprise Agreement 2022

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT MILLHOUSE	MELBOURNE, 11 OCTOBER 2022

Application for approval of the Mondelēz Australia Pty Ltd, Claremont Operations Maintenance Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the Mondelēz Australia Pty Ltd, Claremont Operations Maintenance Enterprise Agreement 2022 (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act). It has been made by Mondelez Australia Pty Ltd T/A Mondelez International (Employer). The Agreement is a single enterprise agreement.

The Employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

Subject to the undertaking 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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ 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.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 18 October 2022. The nominal expiry date of the Agreement is 28 February 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent decision of Mondelez Australia Pty Ltd T/A Mondelez International, the Fair Work Commission addressed an application for the approval of the Mondelēz Australia Pty Ltd, Claremont Operations Maintenance Enterprise Agreement 2022. The application was brought by Mondelez Australia Pty Ltd, a major food manufacturing company, to formalise the terms and conditions of employment for its maintenance employees at the Claremont factory. The dispute centred around whether the proposed agreement complied with the relevant legislative requirements and provided for fair and reasonable terms and conditions.

The legal issues before the Commission were multifaceted, encompassing the adequacy of the agreement in meeting the statutory criteria for approval. Specifically, the Commission had to assess whether the agreement provided for a safety net of minimum entitlements, facilitated appropriate flexibility and efficiency in workplace arrangements, and ensured fair and reasonable terms and conditions of employment. The Commission also considered the processes followed in negotiating the agreement, including the representation of the parties and the fairness of the bargaining process.

In delivering its decision, the Commission examined the provisions of the proposed agreement against the relevant statutory benchmarks. The Commission found that the agreement satisfied the requirements for a safety net of minimum entitlements, provided adequate flexibility to accommodate the operational needs of the Claremont factory, and offered fair and reasonable terms and conditions. Furthermore, the Commission concluded that the negotiation process was fair and appropriate, given the representation of the parties and the thoroughness of the bargaining. Based on these findings, the Commission approved the Mondelēz Australia Pty Ltd, Claremont Operations Maintenance Enterprise Agreement 2022.

The final orders of the Commission included the approval of the agreement, with specific attention to the terms and conditions outlined within. The decision underscores the importance of ensuring that enterprise agreements not only meet legislative requirements but also facilitate effective and fair workplace practices.

Mondelez Australia Pty Ltd T/A Mondelez International

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established