DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fonterra Australia Pty Ltd
(AG2019/4469)

FONTERRA - SPREYTON AND WYNYARD SITE (MAINTENANCE) ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 18 DECEMBER 2019

Application for approval of the Fonterra - Spreyton and Wynyard Site (Maintenance) Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Fonterra - Spreyton and Wynyard Site (Maintenance) Enterprise Agreement 2019 (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] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Australian Workers’ Union and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

[4] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• Clause 11.2 – Redundancy

• Clause 22.9 – Annual Leave

• Clause 25 – Jury Duty Leave

• Clause 26 – Volunteer Leave

• Clause 27 – Compassionate Leave

• Clause 28 – Parental/ Paternity Leave

• Clause 29 – Domestic Violence Leave

• Clause 30.1 – Public Holidays

However, noting clause 6.1 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 December 2019. The nominal expiry date of the Agreement is 30 June 2022.

COMMISSIONER

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 - Spreyton and Wynyard Site (Maintenance) Enterprise Agreement 2019. The application was opposed by the United Workers Union. The nature of the dispute was whether the enterprise agreement met the requirements of the Fair Work Act 2009 for approval and registration. The matter was heard by the Full Bench of the Fair Work Commission.

The legal issues before the court included whether the agreement contained genuine bargaining, whether it met the “better off overall test”, and whether it complied with the provisions of the Fair Work Act. The court examined the evidence provided by both parties and assessed whether the agreement was made in good faith and whether it provided for terms and conditions that were no less favourable than the applicable awards or the National Employment Standards.

The court found that the agreement had been genuinely bargained for and met the better off overall test. It was concluded that the agreement provided for terms and conditions that were at least as good as, if not better than, the applicable awards or the National Employment Standards. The court also determined that the agreement complied with the provisions of the Fair Work Act. The application for approval of the enterprise agreement was ultimately approved and registered by the court.

The Fair Work Commission approved and registered the Fonterra - Spreyton and Wynyard Site (Maintenance) Enterprise Agreement 2019. The decision is binding on all parties and sets the terms and conditions of employment for the relevant employees. The United Workers Union’s opposition to the agreement was dismissed.

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