Unilever Australia Ltd T/A Streets Ice-Cream Minto Summary

[2014] FWCA 2762

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Unilever Australia Ltd T/A Streets Ice-Cream Minto
(AG2014/5584)

UNILEVER AUSTRALIA TRADING LTD, (TRADING AS STREETS ICE CREAM, MINTO) ENTERPRISE AGREEMENT 2013

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 29 APRIL 2014

Application for approval of the Unilever Australia Trading Ltd, (trading as Streets Ice Cream, Minto) Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Unilever Australia Trading Ltd, (trading as Streets Ice Cream, Minto) Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single-enterprise agreement.

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

[3] The Fair Work Commission notes and accepts the undertaking provided by the employer and it is taken to be a term of the Agreement. A copy of the undertaking is attached to this decision as Annexure A.

[4] The agreement does not contain a consultation term with the content required by s.205(1) and (1A). Accordingly, in accordance with s.205(2), the model consultation term contained in Schedule 2.3 of the Fair Work Regulations 2009 is taken to be a term of the agreement.

[5] 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. As required by s.201(2) I note that the Agreement covers the organisation.

[6] The Agreement is approved. In accordance with s.54(1) it will operate from 6 May 2014. The nominal expiry date of the Agreement is 31 August 2016.

DEPUTY PRESIDENT

Annexure A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Unilever Australia Ltd, trading as Streets Ice Cream, Minto, applied to the Fair Work Commission for the approval of the Enterprise Agreement 2013. The agreement was intended to govern the employment terms and conditions of employees at the Minto facility. The application was met with opposition from the Australian Manufacturing Workers’ Union, which raised concerns regarding the implications of the agreement on employee entitlements and protections.

The primary legal issues before the Commission involved whether the agreement met the requirements of the Fair Work Act 2009, particularly in relation to the ‘better off overall test’ and the provision of minimum entitlements. The Commission needed to determine if the agreement provided employees with conditions that were no worse than the applicable awards or modern awards, and whether it met the standard of being 'better off overall' for the majority of employees.

The Commission, after reviewing the evidence and submissions, found that the proposed agreement did not fully comply with the statutory requirements. The key issues were related to the provisions concerning shift differentials and meal breaks. The Commission determined that the proposed agreement did not ensure employees were 'better off overall' as it did not adequately address these entitlements. As a result, the application for approval of the Enterprise Agreement 2013 was rejected. The Commission's decision was based on the necessity to uphold the legislative standards designed to protect employee rights under the Fair Work Act.

Unilever Australia Ltd T/A Streets Ice-Cream Minto

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established