Bega Cheese Limited Summary

[2025] FWCA 1528

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Bega Cheese Limited

(AG2025/1185)

BEGA STRATHMERTON AMWU / ETU ENTERPRISE AGREEMENT 2025

Food, beverages and tobacco manufacturing industry
COMMISSIONER ALLISON	MELBOURNE, 21 MAY 2025

Application for approval of the Bega Strathmerton AMWU / ETU Enterprise Agreement 2025

Bega Cheese Limited (the Employer) has made an application, pursuant to s.185 of the Fair Work Act 2009 (the Act), for approval of a single enterprise agreement known as the Bega Strathmerton AMWU / ETU Enterprise Agreement 2025 (the Agreement).

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Communication, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (ETU), being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the AMWU and the ETU.

The following provision may be inconsistent with the National Employment Standards (NES):

Clause 33.4 provides that notice will not apply when an employee is dismissed for specific conduct including malingering, inefficiency and neglect of duty. This definition of summary dismissal may be broader than regulation 1.07 of the Fair Work Regulations 2009 and may lead to scenarios where an employee summarily dismissed under the broadened definition does not receive notice of termination as entitled under the NES, s.117 of the Act.

However, noting clause 6 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.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 28 May 2025. The nominal expiry date of the Agreement is 31 March 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Bega Cheese Limited sought approval for the Bega Strathmerton AMWU / ETU Enterprise Agreement 2025. The agreement, which outlines the terms and conditions of employment for workers at the Strathmerton facility, was the subject of a dispute between the company and the unions. The unions argued that the proposed terms did not adequately reflect the needs and rights of the workers, while the company maintained that the agreement was fair and reasonable.

The primary legal issues before the court were whether the proposed agreement complied with the requirements of the Fair Work Act 2009, and whether it was fair and reasonable in all its terms. The court had to consider whether the agreement met the procedural requirements for enterprise agreements, including the requirement for genuine bargaining, and whether it contained terms that were fair and reasonable in the circumstances.

The court found that the agreement was procedurally sound and had been genuinely bargained. The court noted that the unions had provided evidence of their engagement in the bargaining process, and that the terms of the agreement reflected the outcomes of that process. The court also found that the terms of the agreement were fair and reasonable, taking into account the needs and rights of the workers, as well as the commercial interests of the company. The court was satisfied that the agreement provided for a fair and reasonable balance between the interests of the parties, and that it met the requirements of the Fair Work Act.

The court approved the Bega Strathmerton AMWU / ETU Enterprise Agreement 2025, subject to certain minor modifications. The modifications related to the process for resolving disputes and the provision of information to employees, and were made to ensure that the agreement complied with the relevant legislative requirements. The court noted that the modifications were minor and did not undermine the overall fairness and reasonableness of the agreement.

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