DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fonterra Australia Pty Ltd
(AG2016/7491)

FONTERRA AUSTRALIA PTY LTD (DENNINGTON) MAINTENANCE EMPLOYEES ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER GREGORY	MELBOURNE, 9 FEBRUARY 2017

Application for approval of the Fonterra Australia Pty Ltd (Dennington) Maintenance Employees Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Fonterra Australia Pty Ltd (Dennington) Maintenance Employees 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 Applicant 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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, 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 these organisations.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 February 2017. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Fair Work Commission (FWC) was asked to approve an enterprise agreement proposed by Fonterra Australia Pty Ltd. The dispute involved the Maintenance Employees Enterprise Agreement 2016, which was negotiated between the company and the union representing the employees. The union sought to ensure that the proposed agreement met the requirements of the Fair Work Act 2009, including the 'better off overall test' which requires that employees be no worse off financially and have at least maintained their entitlements. The company argued that the agreement was fair and reasonable and provided for improved conditions and remuneration for the employees.

The legal issues before the FWC included whether the proposed agreement met the 'good faith' requirements of the Act, whether it provided for terms and conditions that were no less favourable than the applicable award, and whether it satisfied the 'better off overall test'. The FWC had to consider the evidence and submissions from both parties to determine whether the agreement was fair and reasonable, and whether it complied with the statutory requirements. The union argued that the agreement did not sufficiently address the employees' concerns about overtime and shift penalties, while the company maintained that the agreement provided for improved conditions and remuneration.

After considering the evidence and submissions, the FWC found that the proposed agreement met the 'good faith' requirements and provided for terms and conditions that were at least no less favourable than the applicable award. The FWC also found that the agreement satisfied the 'better off overall test', as employees would be no worse off financially and would have at least maintained their entitlements. The FWC noted that while there were some concerns raised by the union about overtime and shift penalties, these were addressed in the agreement and the overall package provided for improved conditions and remuneration. The FWC approved the proposed agreement, subject to certain minor modifications to address specific concerns raised during the hearing.

The FWC made an order approving the Maintenance Employees Enterprise Agreement 2016, subject to certain modifications. The modifications included changes to the shift penalty rates and overtime provisions to address the union's concerns. The FWC also made an order that the agreement would commence on the first day of the fourth month after the date of the order, to allow for the necessary implementation processes to be put in place. The parties were directed to provide written confirmation of their acceptance of the modified agreement within 14 days of the date of the order.

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