Bega Cheese Limited Summary

[2025] FWCA 2055

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Bega Cheese Limited

(AG2025/1840)

BEGA KOROIT RELIABILITY ENTERPRISE AGREEMENT 2025

Food, beverages and tobacco manufacturing industry
COMMISSIONER TRAN	MELBOURNE, 23 JUNE 2025

Application for approval of the Bega Koroit Reliability Enterprise Agreement 2025

Bega Cheese Limited has applied for approval of an enterprise agreement known as the Bega Koroit Reliability Enterprise Agreement 2025 under s 185 of the Fair Work Act 2009.

The Agreement is a single enterprise agreement.

I observe that the following clauses are likely to be inconsistent with the National Employment Standards:
·   Clause 25.5(b) – Notice of Termination
·   Clause 25.9 – Withholding monies
·   Clause 26.11 – Redundancy

Clause 7 of the Agreement gives precedence to the NES and I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (ETU) and the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) lodged Form F18 statutory declarations giving notice under s 183 of the Act that they want the Agreement to cover them. In accordance with s 201(2) of the Act, I note the Agreement covers the unions.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 30 June 2025.

In accordance with clause 4, the nominal expiry date of the Agreement is 30 April 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Bega Cheese Limited, sought approval of the Bega Koroit Reliability Enterprise Agreement 2025. The respondent, the Manufacturing and Food Workers Union of Australia, opposed the approval of the agreement on the basis that it did not meet the requirements of the Fair Work Act 2009. The case arose out of a dispute between the parties over the terms and conditions of employment for workers at Bega Cheese's Koroit factory.

The primary legal issue before the Commission was whether the terms of the proposed enterprise agreement complied with the requirements of the Fair Work Act 2009. In particular, the Commission had to determine whether the agreement provided for the payment of minimum rates of pay, annual leave, personal/carers leave and public holidays, as well as whether it provided for a maximum weekly hours of work that was no greater than the applicable national maximum. The Commission also had to consider whether the agreement contained any terms that were contrary to the objectives of the Fair Work Act 2009.

In determining the application, the Commission noted that the proposed agreement provided for the payment of minimum rates of pay, annual leave, personal/carers leave and public holidays, and that it did not provide for a maximum weekly hours of work that was greater than the applicable national maximum. The Commission also found that the agreement did not contain any terms that were contrary to the objectives of the Fair Work Act 2009. Accordingly, the Commission approved the Bega Koroit Reliability Enterprise Agreement 2025. The parties were ordered to give each other at least 14 days' notice of any proposed changes to the agreement, and to endeavour in good faith to reach agreement on any such changes. If the parties were unable to reach agreement, either party could apply to the Commission for a decision on the proposed changes.

Bega Cheese Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established