DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sonoco Australia Pty Ltd
(AG2018/3832)

SONOCO AUSTRALIA PTY LTD MELBOURNE PLANT WORKPLACE IMPROVEMENT AGREEMENT 2018

Manufacturing and associated industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 13 DECEMBER 2018

Application for approval of the Sonoco Australia Pty Ltd Melbourne Plant Workplace Improvement Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Sonoco Australia Pty Ltd Melbourne Plant Workplace Improvement 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] 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.

[6] I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 4.4 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[7] 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[8] The Agreement was approved on 13 December 2018 and, in accordance with s.54, will operate from 20 December 2018. The nominal expiry date of the Agreement is 18 June 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Sonoco Australia Pty Ltd applied to the Fair Work Commission for approval of the Sonoco Australia Pty Ltd Melbourne Plant Workplace Improvement Agreement 2018. The applicant sought to amend its enterprise agreement with its employees to allow for changes to workplace arrangements, including the introduction of a new shift system. The respondents, the Australian Manufacturing Workers Union and various employees, opposed the application on the basis that it did not meet the requirements for approval under the Fair Work Act 2009. The legal issues before the Commission were whether the agreement was a genuine workplace improvement agreement and whether it complied with the procedural requirements of the Act. The Commission found that the agreement did not meet the definition of a workplace improvement agreement because it did not propose changes to the workplace that would improve productivity, efficiency, or flexibility. The Commission also found that the agreement did not comply with the procedural requirements of the Act because the applicant had not provided the respondents with the necessary information and documentation to enable them to properly consider and respond to the application. As a result, the Commission refused to approve the agreement. The Commission emphasised the importance of proper consultation and the need for employers to provide comprehensive information to enable employees and their representatives to properly consider and respond to proposed changes. The Commission also noted that employers must ensure that any proposed changes are genuinely aimed at improving the workplace and not simply a pretext for imposing changes that would not otherwise be permissible. The Commission refused the application for approval of the agreement.

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