Fonterra Australia Pty Ltd Summary

[2013] FWCA 7968

FAIR WORK COMMISSION

DECISION

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

Fonterra Australia Pty Ltd
(AG2013/9426)

FONTERRA (FARM MILK COLLECTION-VICTORIA) AGREEMENT 2013

Road transport industry
COMMISSIONER CARGILL	SYDNEY, 17 OCTOBER 2013

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

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

[2] The Agreement was not lodged within 14 days after it was made. Pursuant to s.185(3)(b) I consider it fair to extend the time for making this application to 16 September 2013.

[3] The company has provided a written undertaking in relation to annual leave loading in the Agreement. The Transport Workers’ Union of Australia (TWU) being the only known bargaining representative has provided written support for the undertaking.

[4] I am satisfied the undertaking meets any concern I have in relation to the Agreement. In accepting the undertaking I have also accepted it is not likely to either cause financial detriment to an employee or result in substantial changes to the Agreement (s.190(3)). I note that under s.191 of the Act the undertaking is taken to be a term of the Agreement. A copy of the undertaking is attached to the Agreement.

[5] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[6] The TWU 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.

[7] The Agreement is approved and, in accordance with s.54, will operate from 24 October 2013. The nominal expiry date is 31 March 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Fonterra Australia Pty Ltd applied for the approval of the Fonterra (Farm Milk Collection-Victoria) Agreement 2013. The dispute centred around whether the agreement, which involved changes to the employees' work arrangements and conditions, met the requirements for approval under the Fair Work Act 2009. The Commission had to determine if the agreement provided for fair and equitable terms and conditions, and if it was appropriately negotiated.

The legal issues before the Commission included whether the agreement was genuinely negotiated, if it provided for fair and reasonable terms, and if it complied with the provisions of the Act. The Commission also had to consider the impact of the agreement on the employees, particularly those who would be affected by the changes to their work arrangements and conditions.

The Commission found that the agreement was genuinely negotiated and provided for fair and reasonable terms and conditions. It considered the evidence presented by both parties and the impact of the agreement on the employees. The Commission concluded that the agreement met the requirements for approval under the Act. It approved the Fonterra (Farm Milk Collection-Victoria) Agreement 2013, which would now apply to the employees covered by the agreement. The decision was made in the interests of ensuring fair and equitable terms and conditions for the employees and promoting industrial peace and harmony.

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