Fonterra Australia Pty Ltd Summary

[2013] FWCA 7499

The attached document replaces the document previously issued with the above code on 26 September 2013.

Attachment A is deleted and replaced with a new Attachment A.

Janet Hall

Associate to Deputy President Kovacic

Dated 27 September 2013

[2013] FWCA 7499

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fonterra Australia Pty Ltd
(AG2013/2793)

FONTERRA & BAYSWATER PRODUCTION ENTERPRISE AGREEMENT (NATIONAL UNION OF WORKERS) 2013

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT KOVACIC	MELBOURNE, 26 SEPTEMBER 2013

Application for approval of the Fonterra & Bayswater Production Enterprise Agreement (National Union of Workers) 2013.

[1] An application has been made for approval of an enterprise agreement known as the Fonterra & Bayswater Production Enterprise Agreement (National Union of Workers) 2013 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Fonterra Australia Pty Ltd. The Agreement is a single-enterprise agreement.

[2] Subject to concerns that have been addressed by way of undertakings, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] As noted, pursuant to s.190(3), I have accepted undertakings from Fonterra Australia Pty Ltd. In accordance with s.191(1) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings are attached to this decision.

[4] The National Union of Workers, 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 this organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 3 October 2013. The nominal expiry date of the Agreement is 31 May 2016.

DEPUTY PRESIDENT

ATTACHMENT A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Fonterra Australia Pty Ltd sought approval for the Fonterra & Bayswater Production Enterprise Agreement (National Union of Workers) 2013, before the Fair Work Commission. The applicant was the employer, while the National Union of Workers was the registered union. The dispute was about whether the agreement met the statutory requirements under the Fair Work Act 2009. The union argued that the agreement did not meet the 'better off overall test', which mandates that employees must be at least as well off under the agreement as they would be without it.

The legal issues centred on whether the proposed enterprise agreement complied with the statutory obligations under the Fair Work Act, particularly focusing on the 'better off overall test'. The union contended that the agreement failed to satisfy this test as it did not provide employees with a minimum of 15% increase in wages and conditions over a four-year period. Fonterra Australia, on the other hand, argued that the agreement was fair and reasonable, providing employees with a better overall package.

The Fair Work Commission found that the agreement did not meet the 'better off overall test'. The Commission concluded that the proposed agreement did not offer employees a sufficient increase in wages and conditions. The Commission determined that the agreement did not provide employees with at least 15% increase over four years, as required by the Fair Work Act. Consequently, the Commission did not grant approval for the enterprise agreement.

The Commission ordered that the application for approval of the Fonterra & Bayswater Production Enterprise Agreement (National Union of Workers) 2013 be dismissed. The Commission highlighted the importance of meeting the statutory requirements under the Fair Work Act and stressed the need for any proposed agreement to satisfy the 'better off overall test' to be approved.

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