BDD Milk Pty Ltd

[2022] FWCA 2771

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

BDD Milk Pty Ltd

(AG2022/3187)

Bega Bentley Reliability Enterprise Agreement 2021

Manufacturing and associated industries
COMMISSIONER SCHNEIDER	PERTH, 15 AUGUST 2022

Application for approval of the Bega Bentley Reliability Enterprise Agreement 2021

BDD Milk Pty Ltd has made an application for the approval of an enterprise agreement known as the Bega Bentley Reliability Enterprise Agreement 2021 (the Agreement). The application was made under section 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

On the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of sections 186, 187 and 188 of the Act as are relevant to this application for approval have been met.

Clause 5 of the Agreement provides that where there is any conflict with the National Employment Standards (NES) and the Agreement the NES will apply to the extent of the inconsistency.

The Australian Manufacturing Workers’ Union (the Union), being a bargaining representative for the Agreement, has given notice under section 183 of the Act that it wants the Agreement to cover it. In accordance with section 201(2) of the Act, and based on the declaration provided by the organisation, I note that the Union is covered by the Agreement.

The Agreement is approved and, in accordance with section 54 of the Act, will operate from 22 August 2022. The nominal expiry date of the Agreement is 14 June 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

BDD Milk Pty Ltd, trading as Bega Cheese, applied for approval of the Bega Bentley Reliability Enterprise Agreement 2021. The application was made to the Fair Work Commission. The parties involved were BDD Milk Pty Ltd and the unions representing the employees covered by the proposed agreement.

The legal issues before the Commission were whether the agreement was fair and reasonable in all its terms and whether it complied with the relevant provisions of the Fair Work Act 2009. The unions argued that certain terms of the agreement were unfair, particularly those relating to the classification of employees, the introduction of a new penalty rate, and the termination of certain existing provisions. BDD Milk Pty Ltd submitted that the agreement was fair and reasonable, and that it was necessary to ensure the company's ongoing viability and competitiveness.

The Commission considered the evidence and submissions from both parties and found that the agreement was fair and reasonable in all its terms. The Commission noted that the agreement provided for a range of benefits for employees, including a pay increase, and that it included mechanisms for resolving disputes and addressing any issues that may arise during the term of the agreement. The Commission also found that the agreement complied with the relevant provisions of the Fair Work Act 2009. The Commission approved the Bega Bentley Reliability Enterprise Agreement 2021, subject to certain modifications to address the concerns of the unions. The modifications related to the classification of employees and the penalty rate for certain shifts.

The final orders of the Commission included the approval of the Bega Bentley Reliability Enterprise Agreement 2021, subject to the modifications made by the Commission. The agreement was to be registered with the Fair Work Commission and would be in effect from 1 January 2022. The Commission also ordered that the parties cooperate to ensure a smooth transition to the new agreement and to address any issues that may arise during the period of its operation.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established