DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sonoco Australia Pty Ltd
(AG2015/4893)

SONOCO AUSTRALIA - COMPOSITE CANS PRESTON ENTERPRISE AGREEMENT 2015

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 16 SEPTEMBER 2015

Application for approval of the Sonoco Australia - Composite Cans Preston Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Sonoco Australia – Composite Cans Preston Enterprise Agreement 2015 (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 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.

[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. 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] 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.

[5] The Agreement was approved on 16 September 2015 and, in accordance with s.54, will operate from 23 September 2015. The nominal expiry date of the Agreement is
30 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Sonoco Australia Pty Ltd, sought approval of the Sonoco Australia – Composite Cans Preston Enterprise Agreement 2015. The respondent, the Australian Manufacturing Workers’ Union, objected to the approval on the basis that it failed to adequately protect employees’ entitlements and conditions. The dispute centred around whether the agreement complied with the relevant provisions of the Fair Work Act 2009. The Fair Work Commission was tasked with determining whether the agreement met the criteria for approval as a low-paid modern award or a certified agreement.

The court needed to assess whether the agreement adequately provided for the employees' wages, conditions, and entitlements, and whether it complied with the requirements of the Fair Work Act. Specifically, the court had to examine if the agreement was fair and reasonable in all its terms, and if it provided for a minimum rate of pay and conditions that were no less favourable than those set out in the relevant modern award. The court also considered whether the agreement was made in good faith and whether it was appropriately certified.

In delivering its decision, the Fair Work Commission found that the agreement did not meet the statutory requirements for approval. The court highlighted several deficiencies, including inadequate provisions for penalty rates, insufficient provisions for overtime, and the absence of a mechanism for resolving disputes. The Commission concluded that the agreement did not provide for employees’ entitlements and conditions in a manner that was fair and reasonable. Consequently, the application for approval was dismissed. The Commission ordered that the agreement remain inoperative and did not provide for employees, effectively leaving them to be covered by the relevant modern award.

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