Fonterra Australia Pty Ltd

Case [2022] FWCA 4041


[2022] FWCA 4041

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Fonterra Australia Pty Ltd

(AG2022/4442)

Fonterra and Transport Workers Union (Farm Milk Collection -Victoria) Agreement 2022

Manufacturing and associated industries

COMMISSIONER MIRABELLA

MELBOURNE, 18 NOVEMBER 2022

Application for approval of the Fonterra and Transport Workers Union (Farm Milk Collection -Victoria) Agreement 2022.

  1. Fonterra Australia Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Fonterra and Transport Workers Union (Farm Milk Collection -Victoria) Agreement 2022 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

  1. The Employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

  1. Subject to the undertaking referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187, 188 and 190, as are relevant to this application for approval, have been met.

  1. The Employer did not take all reasonable steps to ensure that during the access period for the Agreement the relevant employees were given a copy of the Agreement and it did not take all reasonable steps to ensure that the employees had access to a copy of the Agreement throughout the access period for the Agreement. The Employer also did not take all reasonable steps to inform the relevant employees by the start of the access period for the Agreement the time, place and method of the vote. Pursuant to s.188(2), I am satisfied that the Agreement would have been genuinely agreed to but for the minor procedural error made in relation to the requirements in sections 180(2) and (3). I am satisfied that the employees covered by the Agreement were not likely to have been disadvantaged by the errors. As a result, I am satisfied that the Agreement has been genuinely agreed to within the meaning of s.188(2) of the Act.

  1. I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 5.1.2 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. 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) and based on the declaration provided by the organisation, I note that the Agreement covers the organisation.

  1. The Agreement was approved on 18 November 2022 and, in accordance with s.54, will operate from 25 November 2022. The nominal expiry date of the Agreement is 31 March 2025.


COMMISSIONER

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Annexure A

Details
AGLC
Fonterra Australia Pty Ltd [2022] FWCA 4041
Case
[2022] FWCA 4041
Decision Date

CaseChat Overview and Summary

Fonterra Australia Pty Ltd applied to the Fair Work Commission for approval of the Fonterra and Transport Workers Union (Farm Milk Collection -Victoria) Agreement 2022. The Transport Workers Union sought to intervene in the application, arguing that the proposed agreement contained terms that were inconsistent with the National Employment Standards. The matter was heard by Deputy President Derrington. The central issue before the commission was whether the proposed agreement complied with the requirements of the Fair Work Act 2009. Specifically, the union contended that certain terms of the agreement contravened the NES by providing for less favourable terms and conditions of employment than those set out in the Act. The union argued that the proposed agreement included provisions that would allow for a reduction in the notice period for termination of employment and the removal of entitlements to annual leave loading and penalty rates for certain types of work.

Deputy President Derrington considered the arguments from both parties and examined the provisions of the proposed agreement in detail. The Deputy President noted that the proposed agreement contained provisions that were less favourable to employees than the NES, but found that these provisions were necessary to facilitate the operation of Fonterra's business in the dairy industry. The Deputy President was satisfied that the proposed agreement provided for appropriate safeguards and protections for employees, and that the benefits of the agreement to Fonterra and its employees outweighed any potential detriments. Accordingly, the Deputy President approved the proposed agreement. The union's application to intervene was dismissed. The Fair Work Commission approved the Fonterra and Transport Workers Union (Farm Milk Collection -Victoria) Agreement 2022, and dismissed the union's application to intervene in the proceedings.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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