DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Nestlé Australia Ltd
(AG2016/6880)

NESTLE AUSTRALIA LIMITED TONGALA (MAINTENANCE EMPLOYEES) ENTERPRISE AGREEMENT 2015

Manufacturing and associated industries
COMMISSIONER GREGORY	MELBOURNE, 6 JANUARY 2017

Application for approval of the Nestle Australia Limited Tongala (Maintenance Employees) Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Nestle Australia Limited Tongala (Maintenance Employees) Enterprise Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Nestlé Australia 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] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being bargaining representatives for the Agreement, have given notice under s.183 of the Act that it wants the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 January 2017. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Nestlé Australia Ltd recently applied to the Fair Work Commission for approval of the Nestlé Australia Limited Tongala (Maintenance Employees) Enterprise Agreement 2015. The applicants were the employer, Nestlé Australia, and the union, the National Union of Workers. The dispute was about whether the agreement met the requirements of the Fair Work Act 2009.

The primary issue for the Commission was whether the agreement satisfied the “better off overall test” outlined in the Fair Work Act, meaning that the employees would be better off under the new agreement than they would be under the applicable award or safety net. The second issue was whether the agreement contained all the mandated terms and conditions, and if it complied with any other legal requirements.

The Commission found that the agreement did indeed meet the better off overall test, as the employees would receive additional benefits under the new agreement, including increased wages and other entitlements. The Commission also found that the agreement contained all the required terms and conditions, and that it complied with all other legal requirements. Therefore, the Commission approved the agreement.

The Fair Work Commission approved the Nestlé Australia Limited Tongala (Maintenance Employees) Enterprise Agreement 2015, finding that it met the better off overall test and contained all the mandated terms and conditions. The decision serves as an important reminder to employers and unions of the importance of ensuring that any enterprise agreement meets all the legal requirements before applying for approval.

Nestlé 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