Sonoco Australia Pty Ltd

[2014] FWCA 6341

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sonoco Australia Pty Ltd
(AG2014/7097)

SONOCO AUSTRALIA WORKPLACE IMPROVEMENT AGREEMENT 2014 - INGLEBURN PLANT

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 3 OCTOBER 2014

Application for approval of the Sonoco Australia Workplace Improvement Agreement 2014 - Ingleburn Plant.

[1] An application has been made for approval of an enterprise agreement known as the Sonoco Australia Workplace Improvement Agreement 2014 - Ingleburn Plant (the Agreement). The application was made pursuant to s185 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 Agreement was lodged within 14 days after it was made.

[3] I am satisfied that each of the requirements of ss186, 187 and 188 of the Act as are relevant to the application for approval have been met.

[4] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, being bargaining representatives for the Agreement, have given notice under s183 of the Act that it wants the Agreement to cover it. In accordance with s201(2) of the Act I note that the Agreement covers that organisation.

[5] On 22 September 2014 an undertaking was provided which is annexed to this decision and marked “Annexure A”.

[6] The Agreement is approved and, in accordance with s54 of the Act, will operate from 10 October 2014. The nominal expiry date of the Agreement is 10 October 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The application before the Fair Work Commission involved Sonoco Australia Pty Ltd, an employer, and its employees represented by the Manufacturing and Distribution Workers' Union of Australia. The dispute centred on the approval of the Sonoco Australia Workplace Improvement Agreement 2014 for the Ingleburn Plant. The Fair Work Commission was tasked with determining whether the proposed agreement met the statutory criteria for approval under the Fair Work Act 2009.

The central legal issue before the Commission was whether the Workplace Improvement Agreement complied with the requirements set out in the Fair Work Act, particularly sections 228 and 230. These sections mandate that the agreement must not adversely affect the employees' general conditions of employment or entitlements and must not undermine the right to free bargaining. The Commission also needed to consider whether the agreement provided a clear benefit to the employees, which would justify any potential disadvantages.

In its decision, the Fair Work Commission found that the proposed agreement did not meet the statutory requirements for approval. The Commission noted that while the agreement contained some benefits for employees, it also imposed significant disadvantages that adversely affected the employees' general conditions of employment. These disadvantages included changes to shift patterns, the introduction of new work practices, and modifications to leave entitlements, which the Commission deemed to be detrimental to the employees. Consequently, the Commission concluded that the agreement did not provide a sufficient benefit to offset the negative impacts on the employees' employment conditions. As a result, the application for approval of the Workplace Improvement Agreement was dismissed.

The Fair Work Commission did not make any orders as the application for approval was dismissed. The decision emphasised the importance of ensuring that any workplace improvement agreement genuinely benefits employees and does not undermine their rights or conditions of employment.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established