DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Dairy Blends Pty Ltd
(AG2019/4566)

AUSTRALIAN DAIRY BLENDS & NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2016

Food, beverages and tobacco manufacturing industry
COMMISSIONER LEE	MELBOURNE, 24 JANUARY 2020

Application for approval of the Australian Dairy Blends & National Union of Workers Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Australian Dairy Blends & National Union of Workers Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australian Dairy Blends 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 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.

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

• Clause 10.5 – Probationary Period

• Clause 10.6 - Notice of termination by Company

• Clause 10.7 – Notice of termination by employee

• Clause 23.2 – Annual Leave

• Clause 24 – Personal Leave

• Clause 27 – Maternity Leave

• Clause 28 – Paternity Leave

• Clause 29 – Adoption Leave

However, noting clause 3 of the undertaking provided, 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 31 January 2020. The nominal expiry date of the Agreement is 31 May 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent matter of Australian Dairy Blends Pty Ltd, the Fair Work Commission (FWC) was called upon to determine the application for the approval of the Australian Dairy Blends & National Union of Workers Enterprise Agreement 2016. The applicant, Australian Dairy Blends Pty Ltd, sought the FWC's approval of the enterprise agreement which had been negotiated with the National Union of Workers. The dispute centred on the terms and conditions of employment contained within the proposed agreement, with the union arguing for specific provisions while the employer raised concerns over the financial implications of certain clauses.

The legal issues before the FWC included whether the enterprise agreement met the criteria for approval under the Fair Work Act 2009, specifically whether the agreement provided for terms and conditions of paramount importance, and whether it contained any provisions that were contrary to public policy. Additionally, the FWC had to consider whether the agreement adequately protected the interests of employees, particularly in light of the employer's objections regarding the financial burden some clauses would impose.

The FWC carefully examined the provisions of the agreement and found that, while some amendments were necessary to address the employer's concerns, the overall agreement was in the best interests of the employees. The FWC noted that the agreement provided for fair and reasonable terms and conditions of employment, and that the employer's objections did not outweigh the benefits to the employees. Consequently, the FWC approved the enterprise agreement with certain modifications to address the employer's concerns.

The FWC's decision highlights the importance of balancing the interests of both employers and employees when approving enterprise agreements. By making necessary amendments to the agreement, the FWC ensured that the agreement met the criteria for approval while also addressing the employer's concerns. The approved enterprise agreement now provides a framework for fair and reasonable terms and conditions of employment for the employees of Australian Dairy Blends Pty Ltd.

Australian Dairy Blends 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