DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fonterra Australia Pty Ltd
(AG2019/4381)

FONTERRA (FARM MILK COLLECTION - TASMANIA) AGREEMENT 2019

Road transport industry
COMMISSIONER MCKINNON	MELBOURNE, 13 DECEMBER 2019

Application for approval of the Fonterra (Farm Milk Collection - Tasmania) Agreement 2019.

[1] Application has been made for approval of a single enterprise agreement known as the Fonterra (Farm Milk Collection - Tasmania) Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Fonterra Australia Pty Ltd.

[2] A written undertaking has been given in accordance with s.190 of the Act. A copy of the undertaking is attached in Annexure A. I am satisfied that the undertakings 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.

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

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] 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) I note that the Agreement covers the organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 December 2019. The nominal expiry date of the Agreement is 30 June 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Fonterra Australia Pty Ltd applied for approval of the Fonterra (Farm Milk Collection - Tasmania) Agreement 2019. The application was brought under section 186 of the Fair Work Act 2009. The application was opposed by the Dairy Farmers Union of Tasmania Inc. The Fair Work Commission was required to determine whether the agreement should be approved and registered as a single-employer agreement, as well as whether it should be extended to non-party bargaining agents.

The Commission noted that the agreement contained a number of mandatory matters that were in accordance with the Fair Work Act. The agreement contained provisions relating to the rate of pay, which was calculated as an hourly rate of pay for the first 40 hours of work each week, and overtime rates for hours worked in excess of 40 hours per week. The Commission considered that the agreement also contained provisions that were in accordance with the Fair Work Act in relation to allowances, penalty rates, shift arrangements, and meal breaks. The Commission also noted that the agreement contained provisions relating to leave, and provisions that were in accordance with the Fair Work Act in relation to redundancy, termination of employment, and dispute resolution.

The Commission found that the agreement met the requirements of section 230 of the Fair Work Act, and was therefore eligible for registration as a single-employer agreement. The Commission also found that the agreement should be extended to non-party bargaining agents, as the agreement contained provisions that were in accordance with the Fair Work Act in relation to the matters specified in section 228(1) of the Fair Work Act. The Commission approved and registered the Fonterra (Farm Milk Collection - Tasmania) Agreement 2019, and extended it to non-party bargaining agents.

The Commission ordered that the Fonterra (Farm Milk Collection - Tasmania) Agreement 2019 be registered as a single-employer agreement, and that it be extended to non-party bargaining agents.

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