Australian Dairy Blend Pty Ltd Summary

[2022] FWCA 3413

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Australian Dairy Blend Pty Ltd

(AG2022/4035)

Australian Dairy Blends & United Workers Union Enterprise Agreement 2022

Food, beverages and tobacco manufacturing industry
COMMISSIONER O'NEILL	MELBOURNE, 4 OCTOBER 2022

Application for approval of the Australian Dairy Blends & United Workers Union Enterprise Agreement 2022

Australian Dairy Blend Pty Ltd has applied for approval of an enterprise agreement known as the Australian Dairy Blends & United Workers Union Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is a single enterprise agreement.

The Agreement title contained in clause 2.1 erroneously referred to the year 2016 rather than 2022. On 4 October 2022, the Applicant filed an amended page of the Agreement. Pursuant to s.586 of the Act, I am satisfied that the correction should be made and that it is appropriate to do so.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The United Workers’ Union 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.

I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

·   Clause 23.13(d)(2) – Payment of leave upon termination;
·   Clause 24.3 – Personal Leave; and
·   Clause 31.1(b) – Public holidays.

However, noting clause 2.4 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 October 2022. The nominal expiry date of the Agreement is 31 May 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Australian Dairy Blend Pty Ltd was the applicant in the Fair Work Commission, seeking approval of the Australian Dairy Blends & United Workers Union Enterprise Agreement 2022. The applicant sought to resolve ongoing industrial disputes and establish a new enterprise agreement that would govern the terms and conditions of employment for the company's workers. The case focused on whether the proposed agreement met the statutory requirements under the Fair Work Act 2009 and whether it provided fair and reasonable terms for the employees.

The primary legal issues before the commission were whether the proposed agreement complied with the provisions of the Fair Work Act, including the "better off overall test" (BOOT). The commission also had to determine if the agreement contained all the mandatory terms required by the Act and if it was free from any prohibited content. Additionally, the fairness and reasonableness of the proposed terms and conditions, particularly in relation to wages, hours of work, and other employment matters, were scrutinized.

The Fair Work Commission examined the proposed agreement in detail, considering the evidence provided by both parties. The commission noted the efforts made by the applicant to ensure the agreement met the statutory requirements and provided fair and reasonable terms for the employees. It was satisfied that the agreement complied with the BOOT, as it provided for a combination of benefits and detriments that overall improved the employees' position. The commission also confirmed that the agreement included all mandatory terms and did not contain any prohibited content. Based on these findings, the commission approved the Australian Dairy Blends & United Workers Union Enterprise Agreement 2022, deeming it to be fair and reasonable for the workers.

The final orders of the Fair Work Commission were that the Australian Dairy Blends & United Workers Union Enterprise Agreement 2022 was approved and would be registered under the Fair Work Act. The agreement was to take effect from the date of registration, replacing any existing enterprise agreement between the parties. The commission's decision provided a resolution to the industrial disputes and established a new framework for the terms and conditions of employment for the company's workers.

Australian Dairy Blend Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established