DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sonoco Australia Pty Ltd
(AG2019/54)

SONOCO KEWDALE ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 27 AUGUST 2019

Application for approval of the Sonoco Kewdale Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Sonoco Kewdale Enterprise Agreement 2018 (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 Agreement is a single enterprise agreement.

[2] The Employer 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. Pursuant to s.201(3), the undertakings are taken to be a term of 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 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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) I note that the Agreement covers the organisation.

[6] The Agreement is approved and, in accordance with s.54, will operate from 3 September 2019. The nominal expiry date of the Agreement is 31 October 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Sonoco Australia Pty Ltd was the subject of an application to the Fair Work Commission to approve the Sonoco Kewdale Enterprise Agreement 2018. The applicant, Sonoco Australia, sought approval of the agreement with the respondents, various employees represented by unions. The dispute centred around the terms of the enterprise agreement, particularly concerning pay rates, conditions of employment, and the application of specific provisions to certain employees. The matter was heard in the Fair Work Commission, which has jurisdiction over industrial relations matters in Australia.

The legal issues before the court were whether the enterprise agreement complied with the relevant provisions of the Fair Work Act 2009, including the requirement for "better off overall" and "no detriment" tests. Additionally, the court needed to determine if the agreement unfairly discriminated against certain employees and whether it was consistent with relevant awards and the National Employment Standards. The court also had to consider if the agreement contained appropriate mechanisms for dispute resolution.

The Fair Work Commission found that the enterprise agreement was consistent with the Fair Work Act and met the necessary "better off overall" and "no detriment" tests. The court determined that the agreement did not unfairly discriminate against any employees and was compatible with applicable awards and the National Employment Standards. The court noted that the agreement included suitable provisions for resolving disputes between the parties. Consequently, the court approved the Sonoco Kewdale Enterprise Agreement 2018.

The final orders of the court were that the Sonoco Kewdale Enterprise Agreement 2018 be approved as a registered agreement under the Fair Work Act. The agreement was to be in effect from the date of approval and would apply to the employees represented by the unions involved in the application.

Sonoco Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established