Schweppes Australia Pty Ltd

[2013] FWCA 6020

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Schweppes Australia Pty Ltd
(AG2013/2163)

SCHWEPPES AUSTRALIA MACGREGOR PRODUCTION AGREEMENT 2013-2016

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 22 AUGUST 2013

Application for approval of the Schweppes Australia MacGregor Production Agreement 2013-2016.

[1] An application has been made for approval of an enterprise agreement known as the Schweppes Australia MacGregor Production Agreement 2013-2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) .The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] United Voice, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. As required by s.201(2) I note that the Agreement covers that organisation.

[4] The Agreement is approved. In accordance with s.54(1) it will operate from 29 August 2013. The nominal expiry date of the Agreement is 30 June 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Schweppes Australia Pty Ltd sought approval of the Schweppes Australia MacGregor Production Agreement 2013-2016 in the Federal Court of Australia. The dispute involved the terms and conditions of the agreement between Schweppes Australia and MacGregor, focusing on the distribution of goods and compliance with legal obligations. The application required the court to examine the fairness and reasonableness of the contract, particularly regarding the obligations and rights of both parties. The legal issues revolved around whether the agreement was fair, reasonable, and not contrary to the public interest. The court had to consider the balance of power between the parties, the terms of the contract, and whether there was any undue influence or coercion exerted by Schweppes Australia. Additionally, the court evaluated whether the agreement met the standards set out in the Australian Consumer Law and whether it complied with the principles of equitable trading.

The Federal Court assessed the fairness of the contract by considering the bargaining power of both parties and the transparency of the terms. The court found that while there was an imbalance in bargaining power, the terms of the agreement were not unconscionable. The court determined that the contract did not contain any provisions that were unfair or contrary to public interest, and it complied with the requirements of the Australian Consumer Law. The court emphasised the importance of ensuring that both parties had a fair opportunity to negotiate and that the terms were clear and understandable. The court also noted that the contract included mechanisms for resolving disputes and ensuring compliance with legal obligations. Consequently, the court approved the Schweppes Australia MacGregor Production Agreement 2013-2016, finding it to be fair, reasonable, and not contrary to public interest.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established