DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fonterra Australia Pty Ltd
(AG2017/313)

FONTERRA (FARM MILK COLLECTION – TASMANIA) AGREEMENT 2016

Tasmania
COMMISSIONER GREGORY	MELBOURNE, 16 MARCH 2017

Application for approval of the Fonterra (Farm Milk Collection - Tasmania) Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Fonterra (Farm Milk Collection - Tasmania) 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] 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] 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.

[4] The Transport Workers’ Union of Australia 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 23 March 2017. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Fonterra Australia Pty Ltd applied to the Fair Work Commission for approval of the Fonterra (Farm Milk Collection - Tasmania) Agreement 2016. The dispute arose as the applicant sought to enter into an enterprise agreement with its employees. The Fair Work Commission was tasked with determining whether the proposed agreement met the necessary criteria for approval under the Fair Work Act 2009. The key legal issues involved assessing whether the agreement contained all the mandatory terms required by the Act, ensuring it was free from prohibited content, and confirming that it was made in good faith and without coercion. The applicant argued that the agreement was comprehensive, compliant with legal requirements, and genuinely negotiated. The Commission examined the agreement's provisions against statutory standards, focusing on elements such as minimum wages, penalty rates, and procedural fairness in its formation.

The Commission found that the Fonterra (Farm Milk Collection - Tasmania) Agreement 2016 included all mandatory terms and did not contain any prohibited content. It also concluded that the agreement was made in good faith and without any elements of coercion. The Commission highlighted that the agreement was the result of genuine negotiations between the parties, with evidence of both sides engaging in a fair and transparent process. The Commission approved the agreement, finding it to be fair and reasonable in all its aspects. The decision underscores the importance of ensuring that enterprise agreements meet legislative standards and are genuinely negotiated between employers and employees.

The Fair Work Commission approved the Fonterra (Farm Milk Collection - Tasmania) Agreement 2016, finding it to be compliant with all legal requirements. The Commission determined that the agreement included all mandatory terms, did not contain prohibited content, and was made in good faith. The decision reinforces the importance of ensuring that enterprise agreements are both legally compliant and the product of genuine negotiations. The approval of this agreement sets a precedent for similar agreements in the industry, highlighting the need for adherence to statutory standards and fair bargaining practices.

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