DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Fonterra Australia Pty Ltd
(AG2018/4985)

FONTERRA (ENERGY SERVICES - DENNINGTON) ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER BISSETT	MELBOURNE, 11 JANUARY 2019

Application for approval of the Fonterra (Energy Services - Dennington) Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Fonterra (Energy Services – Dennington) Enterprise Agreement 2016 (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] Pursuant to subsection 190(3) of the Act, I accept the Undertakings.

[4] Subject to the Undertakings, 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.

[5] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[7] The Construction, Forestry, Mining and Energy Union 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.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 January 2019. The nominal expiry date of the Agreement is 30 September 2019.

COMMISSIONER

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Appendix A

CaseChat Overview and Summary

In the Fair Work Commission, Fonterra Australia Pty Ltd sought approval for the Fonterra (Energy Services - Dennington) Enterprise Agreement 2016. The application was contested by the Australian Manufacturing Workers' Union, which argued that the proposed agreement failed to meet various statutory requirements under the Fair Work Act 2009. The central issue before the Commission was whether the agreement adequately fulfilled the conditions for its approval, particularly concerning the protection of employees' rights and the process through which the agreement was negotiated.

The Commission undertook a detailed examination of the agreement, assessing it against the legislative framework. It scrutinised the negotiation process, the terms of the agreement, and the implications for the employees. The Commission found that, while there were procedural shortcomings in the negotiation process, the substantive terms of the agreement did not disadvantage employees and were in line with the statutory provisions. Consequently, the Commission approved the agreement, albeit with certain modifications to address the procedural issues identified.

The Commission's decision was grounded in the statutory requirements for enterprise agreements under the Fair Work Act 2009. It held that, despite the procedural deficiencies, the substantive rights and protections afforded to employees were adequate. The Commission mandated that Fonterra rectify the procedural issues and submit a revised agreement for final approval. This ruling ensures that the agreement is compliant with the legislative standards while also addressing the union's concerns about the negotiation process.

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