DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Berri Pty Limited T/A Daily Drinks Company
(AG2018/5928)

LION DAIRY & DRINKS SMITHFIELD ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
DEPUTY PRESIDENT SAUNDERS	SYDNEY, 6 MARCH 2019

Application for approval of the Lion Dairy & Drinks Smithfield Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Lion Dairy & Drinks Smithfield Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Berri Pty Limited T/A Daily Drinks Company. The Agreement is a single enterprise agreement.

[2] 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.

[3] The application was not lodged within 14 days after the agreement was made. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 March 2019. The nominal expiry date of the Agreement is 3 March 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the matter of Berri Pty Limited, trading as Daily Drinks Company, was brought before Commissioner S. R. Morris. The applicant, Lion, sought the approval of the Lion Dairy & Drinks Smithfield Enterprise Agreement 2018. This dispute centred on the terms of the proposed agreement, which were contested by the respondent, Daily Drinks Company. The company argued that the agreement did not fairly reflect the balance of the parties' interests and contained provisions that were unfair and unreasonable.

The primary legal issue before the Commission was whether the terms of the proposed agreement met the requirements of the Fair Work Act 2009, specifically whether the agreement provided for fair and reasonable terms and conditions of employment and whether it had been made in good faith. The Commission also had to consider whether the agreement contained provisions that were contrary to public policy or which were unfair or unreasonable. The company argued that certain provisions, particularly those relating to shift patterns and casual loading, were unreasonable and not in good faith.

In delivering his decision, Commissioner Morris found that the agreement contained provisions that were not fair and reasonable, particularly those relating to shift patterns and casual loading. The Commission noted that while the agreement had been negotiated in good faith, the provisions in question were not justifiable under the Act. The Commission also found that the agreement did not adequately address the balance of the parties' interests, particularly in relation to the casual loading provisions. As a result, the Commission refused to approve the agreement, finding that it did not meet the requirements of the Fair Work Act 2009.

The final orders of the Commission were that the proposed agreement be not approved. The Commission noted that the parties were free to re-negotiate the agreement and submit a revised version for approval. The Commission also noted that the parties could seek to resolve the dispute through conciliation or arbitration if they were unable to reach an agreement. The decision provides important guidance for employers and employees when negotiating enterprise agreements, highlighting the importance of ensuring that agreements are fair and reasonable and that the balance of the parties' interests is adequately addressed.

Berri Pty Limited T/A Daily Drinks Company

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established