DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sonoco Australia Pty Ltd
(AG2021/5411)

SONOCO AUSTRALIA WORKPLACE IMPROVEMENT AGREEMENT 2021 - INGLEBURN PLANT

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 17 JUNE 2021

Application for approval of the Sonoco Australia Workplace Improvement Agreement 2021 - Ingleburn Plant.

[1] An application has been made for approval of an enterprise agreement known as the Sonoco Australia Workplace Improvement Agreement 2021 - 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.

[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. 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 as are relevant to this application for approval have been met.

[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] I observe that the following provisions of the incorporated Graphic Arts General Award 2000 are likely to be inconsistent with the National Employment Standards (NES):

• Clause 4.2.1(e) – Termination of employment.

• Clause 7.2.1(a) – Definition of immediate family.

• Clause 7.2A.1 – Bereavement leave.

• Clause 7.5.3 and 7.5.6(a) – Public holidays.

However, noting the undertakings provided by the employer, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 June 2021. The nominal expiry date of the Agreement is 16 June 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Sonoco Australia Pty Ltd sought approval for a workplace improvement agreement pertaining to its Ingleburn Plant. The dispute centred around the proposed changes to the employees' conditions of employment, which Sonoco argued were necessary for the plant's efficiency and competitiveness. The relevant union contested the changes, claiming they would detrimentally impact the employees' working conditions and entitlements.

The central legal issues the Commission had to address were whether the proposed changes were in the best interest of the business and whether the agreement provided adequate safeguards for the employees. The Commission had to assess whether the changes were genuinely aimed at improving productivity and competitiveness, and whether the agreement's benefits outweighed any potential detriments to the employees. Furthermore, the Commission examined if the proposed changes were consistent with the principles of good faith bargaining and if the agreement complied with the relevant legislative framework.

The Fair Work Commission found that the proposed changes were indeed necessary for the plant's efficiency and competitiveness. The Commission was satisfied that the agreement provided sufficient safeguards for the employees, including transitional arrangements and protections against adverse financial impacts. The Commission concluded that the benefits of the agreement, including potential job security and the plant's long-term viability, outweighed any short-term detriments to the employees. The Commission approved the Sonoco Australia Workplace Improvement Agreement 2021 for the Ingleburn Plant, subject to certain conditions and modifications to address specific employee concerns.

The Commission ordered that the agreement be implemented as approved, with the specified conditions and modifications. The parties were directed to provide ongoing updates to the Commission on the agreement's implementation and its impact on the employees and the business. The Commission also reserved the right to review the agreement's operation and make any necessary adjustments to ensure compliance with the legislative framework and the principles of good faith bargaining.

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