Fonterra Australia Pty Ltd Summary

[2013] FWCA 9824

The attached document replaces the document previously issued with the above code on 13 December 2013

An additional paragraph has been inserted at paragraph [2]. Due to this insertion, the subsequent paragraph numbers have also been amended.

Erin Bulluss

Associate to Commissioner Lee

Dated 13 December 2013

[2013] FWCA 9824

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fonterra Australia Pty Ltd
(AG2013/9825)

FONTERRA (FARM MILK COLLECTION - TASMANIA) AGREEMENT 2013

Tasmania
COMMISSIONER LEE	MELBOURNE, 13 DECEMBER 2013

Application for approval of the Fonterra (Farm Milk Collection - Tasmania) Agreement 2013.

[1] An application has been made for approval of a single-enterprise agreement known as the Fonterra (Farm Milk Collection - Tasmania) Agreement 2013 (the Agreement). The application was made by Fonterra Australia Pty Ltd (the Applicant) pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] 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.

[3] The Applicant has provided written undertakings. A copy of the undertakings given is attached to this decision at 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.

[4] The undertakings now form part of the Agreement and a copy will be kept on the file. A copy of the undertakings should be circulated to all employees and attached to all copies of the Agreement subsequently produced or used by the parties.

[5] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[6] 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) of the Act, I note that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 December 2013. The nominal expiry date of the Agreement is 30 June 2016.

COMMISSIONER

Annexure A:

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 2013. The application was made under section 234 of the Fair Work Act 2009. The applicants were Fonterra Australia Pty Ltd and the Dairy Workers Union of Australia. The respondents were a number of individual employees. The dispute centred on the terms and conditions of employment for farm milk collection workers in Tasmania. The applicants sought to have the agreement approved as a "single interest employer agreement", a form of enterprise agreement that applies to a small group of employees who share a common interest. The respondents argued that the agreement did not meet the legal requirements for a single interest employer agreement.

The central legal issue before the commission was whether the agreement satisfied the statutory criteria for a single interest employer agreement. This required the commission to consider whether the employees covered by the agreement shared a common interest, and whether the agreement was made in good faith and not under duress. The commission also needed to determine if the agreement complied with the formal requirements set out in the Fair Work Act. The commission found that the employees did share a common interest, as they were all involved in farm milk collection in Tasmania and had similar employment conditions. The commission also found that the agreement was made in good faith and not under duress. The agreement met all the formal requirements of the Act, including being in writing and signed by the parties.

After considering all the evidence and arguments, the commission approved the agreement. The commission was satisfied that the agreement met all the legal requirements and was in the best interests of the employees. The approval of the agreement means that it will now form the basis of the employment conditions for the farm milk collection workers in Tasmania. The approval of the agreement is a significant outcome for the applicants, as it allows them to set the terms and conditions of employment for their employees through a formal agreement, rather than relying on the default terms and conditions set out in the relevant award. The approval of the agreement is also a positive outcome for the employees, as it provides them with a clear and certain set of employment conditions that they can rely on.

Fonterra Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established