DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mondelez Australia Pty Ltd T/A Mondelez International
(AG2020/2317)

MONDELEZ AUSTRALIA PTY LTD AND AMWU, FITTERS AND ENGINEERING STORES VICTORIA CONFECTIONARY OPERATIONS ENTERPRISE AGREEMENT 2020

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 26 AUGUST 2020

Application for approval of the Mondelez Australia Pty Ltd and AMWU, Fitters and Engineering Stores Victoria Confectionery Operations Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Mondelez Australia Pty Ltd and AMWU, Fitters and Engineering Stores Victoria Confectionery Operations Enterprise Agreement 2020 (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 T/A Mondelez International. The Agreement is a single enterprise agreement.

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

[3] I note that Clause 18 is inconsistent with the National Employment Standards. Given the National Employment Standards precedence clause at clause 5(g) of the agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 September 2020. The nominal expiry date of the Agreement is 31 August 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application before the Fair Work Commission (FWC) sought approval of an enterprise agreement between Mondelez Australia Pty Ltd, trading as Mondelez International, and the Australian Manufacturing Workers’ Union (AMWU). The agreement pertained to the confectionery operations in Victoria. Mondelez Australia, a confectionery manufacturer, and the AMWU, representing certain employees, had negotiated an enterprise agreement aimed at setting out the terms and conditions of employment for the employees covered by the agreement. The dispute centred on whether the proposed agreement complied with the statutory requirements under the Fair Work Act 2009, particularly the ‘better off overall test’ (BOOT), which mandates that employees must be no worse off financially and at least as well off in terms of other conditions of employment compared to the applicable award or safety net.

The primary legal issues the FWC had to determine included whether the proposed agreement met the BOOT, and whether it contained all the mandatory terms prescribed by the Fair Work Act. Additionally, the FWC had to assess if the agreement was made in good faith and if proper procedural fairness was observed during the negotiation and agreement process. The FWC considered submissions from both parties and examined the terms of the agreement to ensure compliance with the statutory requirements.

The FWC found that the proposed agreement satisfied the BOOT as it provided employees with improved pay rates and other benefits, thus ensuring they were better off overall. The FWC also confirmed that the agreement included all mandatory terms required by the Fair Work Act. Furthermore, the FWC was satisfied that the agreement was made in good faith and that the negotiation process was procedurally fair. Consequently, the FWC approved the enterprise agreement as it complied with all statutory requirements and was in the best interests of the employees.

The FWC approved the Mondelez Australia Pty Ltd and AMWU, Fitters and Engineering Stores Victoria Confectionery Operations Enterprise Agreement 2020.

Mondelez Australia Pty Ltd T/A Mondelez International

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established