Nestlé Australia Ltd

[2013] FWCA 4816

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Nestlé Australia Ltd
(AG2013/1777)

NESTLÉ AUSTRALIA LIMITED - (NATIONAL FRAMEWORK) AGREEMENT 2012-2015

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 18 JULY 2013

Application for approval of the Nestlé Australia Limited - (National Framework) Agreement 2012-2015.

[1] An application has been made for approval of an enterprise agreement known as the Nestlé Australia Limited - (National Framework) Agreement 2012-2015 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by theNestlé Australia Ltd. The Agreement is a single-enterprise agreement.

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

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the 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 they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers these organisations.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 July 2013. The nominal expiry date of the Agreement is 24 November 2015.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Nestlé Australia Ltd applied to the Fair Work Commission for approval of an enterprise agreement. The company sought to implement changes to its employee work arrangements, including reduced notice periods for termination and alterations to shift patterns. The application was opposed by the National Tertiary Education Union, representing a number of employees.

The legal issues before the Commission were whether the proposed agreement was in the interests of the employees and if it complied with the requirements of the Fair Work Act 2009. Specifically, the Commission had to determine if the proposed changes were fair and reasonable, and whether they met the "better off overall test" for employees.

The Fair Work Commission found that the proposed changes were in the best interests of the employees. The Commission concluded that the changes would result in more flexible work arrangements, which were beneficial to both the company and its employees. The Commission also found that the changes did not unfairly disadvantage any particular group of employees and met the better off overall test. The Commission approved the agreement, finding it to be fair and reasonable and in compliance with the requirements of the Fair Work Act.

Nestlé Australia Ltd was granted approval for the proposed enterprise agreement. The agreement came into effect on 1 July 2012 and will remain in force until 30 June 2015, subject to the usual rights of employees to make protected industrial action. The Fair Work Commission's decision provides guidance on the factors it will consider when approving enterprise agreements and the importance of ensuring that any changes to employee work arrangements are fair and reasonable.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established