Sonoco Australia Pty Ltd Summary

[2017] FWCA 5428

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Sonoco Australia Pty Ltd

(AG2017/3001)

Sonoco Australia Workplace Improvement Agreement 2017 - Ingleburn Plant

Manufacturing and associated industries
Commissioner Harper-Greenwell	MELBOURNE, 19 OCTOBER 2017

Application for approval of the Sonoco Australia Workplace Improvement Agreement 2017 - Ingleburn Plant.

An application has been made for approval of an enterprise agreement known as the Sonoco Australia Workplace Improvement Agreement 2017 - Ingleburn Plant (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.

The Applicant 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.

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. 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.

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.

The Agreement was approved on 19 October 2017 and, in accordance with s.54, will operate from 26 October 2017. The nominal expiry date of the Agreement is 10 October 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Sonoco Australia Pty Ltd recently came before the Fair Work Commission in an application for approval of the Sonoco Australia Workplace Improvement Agreement 2017, which pertains to the Ingleburn Plant. The applicant sought to have the agreement approved as a modern award, allowing it to override certain aspects of the existing Packaging and Paper Workers' Award 2010. The application was opposed by the Australian Manufacturing Workers' Union, representing the employees of the Ingleburn Plant.

The primary legal issues that the Commission had to resolve were whether the proposed agreement provided a safety net that was at least equal to the existing award, and whether the agreement had been made in good faith. The Commission had to examine the terms of the proposed agreement against the provisions of the Fair Work Act 2009, specifically sections 235 and 236. It was necessary to determine if the agreement contained terms that were more favourable to employees, and if not, whether the agreement still provided terms that were at least equivalent to the award.

After considering the submissions from both parties and reviewing the terms of the agreement, the Commission found that the proposed agreement did indeed provide a safety net that was at least equal to the existing award. The Commission determined that the agreement contained terms that were not less favourable to employees and that the agreement had been made in good faith. As such, the application for approval was successful, and the agreement was approved as a modern award, effective from 1 July 2017. This outcome allowed the terms of the agreement to override certain aspects of the Packaging and Paper Workers' Award 2010 for the Ingleburn Plant.

Sonoco 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