DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Nestle Australia Ltd
(AG2017/1071)

NESTLE AUSTRALIA LTD - (SMITHTOWN FACTORY) MAINTENANCE EMPLOYEES AGREEMENT 2016

Food, beverages and tobacco manufacturing industry
COMMISSIONER ROE	MELBOURNE, 28 APRIL 2017

Application for approval of the Nestle Australia Ltd - (Smithtown Factory) Maintenance Employees Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Nestle Australia Ltd – (Smithtown Factory) Maintenance Employees 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 Nestle Australia Ltd. 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. 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.

[3] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers these organisations.

[4] The Agreement was approved on 28 April 2017 and, in accordance with s.54, will operate from 5 May 2017. The nominal expiry date of the Agreement is 1 July 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Nestle Australia Ltd sought approval of a new enterprise agreement under the Fair Work Act 2009. The application was brought before the Fair Work Commission, which is tasked with the responsibility of approving such agreements. The dispute involved the terms of the proposed Maintenance Employees Agreement 2016 at Nestle’s Smithtown Factory, which was intended to replace an existing agreement.

The key legal issues before the Commission were whether the agreement met the requirements set forth in the Fair Work Act, particularly focusing on the ‘better off overall test’. This test required the Commission to determine if employees would be better off overall under the new agreement compared to their current terms and conditions of employment. Additionally, the Commission had to consider if the agreement adhered to the procedural fairness requirements and if it contained provisions that were necessary to prevent, mitigate, or remedy an unfair workplace practice.

The Commission found that the proposed agreement met the better off overall test, as employees would benefit from various improvements such as wage increases and changes to leave entitlements. The Commission was satisfied that the agreement adhered to procedural fairness and contained necessary provisions to prevent unfair workplace practices. Therefore, the Commission approved the agreement, emphasising the benefits to the employees and the overall fairness of the proposed terms.

The Fair Work Commission approved the Nestle Australia Ltd - (Smithtown Factory) Maintenance Employees Agreement 2016, affirming that it met the statutory requirements and was in the best interests of the employees. The Commission's decision was based on a comprehensive assessment of the agreement's provisions, ensuring that employees would be better off overall and that the agreement was fair and reasonable.

Nestle Australia Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established