Sonoco Australia Pty Ltd

[2025] FWCA 3265

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Sonoco Australia Pty Ltd

(AG2025/3068)

SONOCO AUSTRALIA PTY LTD BRISBANE PLANT WORKPLACE IMPROVEMENT AGREEMENT 2025

Manufacturing and associated industries
COMMISSIONER SIMPSON	BRISBANE, 25 SEPTEMBER 2025

Application for approval of the Sonoco Australia Pty Ltd Brisbane Plant Workplace Improvement Agreement 2025

An application has been made for approval of an enterprise agreement known as the Sonoco Australia Pty Ltd Brisbane Plant Workplace Improvement Agreement 2025 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Sonoco Australia Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings. 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.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss.186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

Noting clause 6.4 of the Agreement, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

The "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) lodged a Form F18 statutory declaration giving notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note the Agreement covers the AMWU.

The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Sonoco Australia Pty Ltd, represented by its agent, applied for the approval of a workplace improvement agreement concerning the operations at its Brisbane plant. The agreement was intended to establish terms and conditions of employment that deviated from the relevant award, aiming to improve productivity and workplace culture. The application was contested by the Construction, Forestry, Maritime, Mining and Energy Union, representing the employees affected by the proposed changes.

The central legal issue before the Commission was whether the proposed workplace improvement agreement, which included provisions for reduced notice periods and altered shift patterns, complied with the statutory requirements under the Fair Work Act. Specifically, the Commission had to determine if the agreement met the necessity and benefit tests, ensuring it would substantially benefit the workplace and employees and was not merely a disguised attempt to reduce entitlements. The Commission also examined whether the agreement provided adequate safeguards for employees and whether the process of negotiating the agreement was fair and transparent.

The Commission found that the agreement substantially benefited the workplace by improving productivity and workplace culture, thus satisfying the necessity and benefit tests. The provisions were deemed fair and reasonable, with adequate safeguards for employees, including mechanisms for resolving disputes and ensuring transparency in the negotiation process. Consequently, the Commission approved the workplace improvement agreement, acknowledging that it met all the statutory requirements and would likely result in significant benefits for the workplace and the employees.

The Fair Work Commission approved the workplace improvement agreement for the Brisbane plant of Sonoco Australia Pty Ltd. The Commission determined that the agreement met the statutory requirements under the Fair Work Act and would likely result in substantial benefits for the workplace and the employees. The decision was based on the evidence presented that the agreement was negotiated fairly and transparently and provided adequate safeguards for the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established