DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fonterra Australia Pty Ltd
(AG2018/5807)

FONTERRA DENNINGTON & NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2018

Food, beverages and tobacco manufacturing industry
COMMISSIONER WILSON	MELBOURNE, 19 FEBRUARY 2019

Application for approval of the Fonterra Dennnington & National Union of Workers Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Fonterra Dennnington & National Union of Workers 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 Fonterra Australia 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.

[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 National Union of Workers 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 26 February 2019. The nominal expiry date of the Agreement is 30 June 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Fonterra Australia Pty Ltd sought approval of an enterprise agreement with the National Union of Workers. The agreement was for employees at Fonterra's manufacturing facilities in Dennnington. The Fair Work Commission was tasked with determining whether the agreement met the statutory requirements for approval. The key legal issues centred on whether the agreement complied with the provisions of the Fair Work Act 2009, including provisions related to the agreement's coverage, bargaining representation, and whether it met the "better off overall test".

The Commission examined the bargaining representation of the union, finding it to be adequately representative of the employees. The Court considered whether the agreement provided fair and reasonable terms and conditions for the employees. It also assessed if the agreement met the "better off overall test", which requires that employees be no worse off and at least some employees better off financially. The Commission concluded that the agreement did meet these requirements, balancing the interests of both parties and providing for reasonable terms and conditions of employment.

The Commission approved the agreement, finding it to be fair and reasonable, and met the statutory requirements. The decision emphasised the importance of maintaining a balance between the rights of employers and employees while ensuring the agreement provides for fair terms and conditions. The approval of the enterprise agreement ensures that the terms and conditions of employment are governed by a legally binding document that reflects the needs and interests of both parties.

Fonterra Australia 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