Snow Brand Australia Pty Ltd Summary

[2021] FWCA 7239

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Snow Brand Australia Pty Ltd
(AG2021/8731)

SNOW BRAND AUSTRALIA PTY LTD - INFANT FORMULA DIVISION AND UNITED WORKERS UNION ENTERPRISE AGREEMENT 2021

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 21 DECEMBER 2021

Application for approval of the Snow Brand Australia Pty Ltd - Infant Formula Division and United Workers Union Enterprise Agreement 2021

[1] Snow Brand Australia Pty Ltd has made an application for approval of an enterprise agreement known as the Snow Brand Australia Pty Ltd - Infant Formula Division and United Workers Union Enterprise Agreement 2021 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] The employer has provided a written undertaking, a copy of which is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that it will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement. Although the undertaking ensures only that the relevant rate of pay will not be less than the Award, the Agreement provides for various other benefits, including income protection, such that non-consecutive shift workers, like all other employees, will be better off overall if the Agreement applied to them than if the Award were to apply.

[3] Subject to the undertaking referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 as are relevant to this application for approval has been met.

[4] The United Workers' Union (UWU), 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) and based on its declaration, I note that the Agreement covers the UWU.

[5] The Agreement was approved on 21 December 2021 and, in accordance with s 54, will operate from 28 December 2021. The nominal expiry date of the Agreement is 30 June 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Snow Brand Australia Pty Ltd, the Infant Formula Division, applied to the Fair Work Commission for approval of their Enterprise Agreement with the United Workers Union for 2021. The Union sought various terms regarding wages, hours of work, leave entitlements, and other employment conditions. The application was opposed by the company, which argued that certain provisions in the agreement were unfair or did not comply with statutory requirements. The Fair Work Commission was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009.

The central legal issues before the Commission involved whether the provisions of the proposed agreement were bona fide, whether they complied with the statutory provisions, and whether they were fair and reasonable in all the circumstances. The company argued that certain wage provisions and other terms were not in line with the statutory requirements and were not fair and reasonable. The Union contended that the terms were necessary to address the needs of the employees and were consistent with the relevant statutory framework.

The Commission found that while some provisions of the agreement did not meet the statutory requirements, the overall agreement was fair and reasonable. The Commission made several modifications to the agreement to ensure compliance with the Fair Work Act, particularly in relation to the wage provisions. The Union and the company were given the opportunity to review the modified agreement and provide feedback. After minor amendments, the Commission was satisfied that the agreement met all the necessary criteria for approval. The Commission approved the agreement with the modifications and minor amendments.

The final orders included the approval of the Enterprise Agreement between Snow Brand Australia Pty Ltd, the Infant Formula Division, and the United Workers Union for 2021, subject to the modifications and minor amendments made by the Commission. The agreement was to come into effect on the date of the Commission's approval and would bind the parties until the next agreed upon date for negotiation or until terminated in accordance with the agreement. The Commission's decision was based on its findings that the modified agreement was fair and reasonable and complied with the statutory requirements of the Fair Work Act.

Snow Brand Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established