DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fonterra Australia Pty Ltd
(AG2019/2207)

FONTERRA AND TRANSPORT WORKERS UNION (FARM MILK COLLECTION - VICTORIA) AGREEMENT 2019

Road transport industry
COMMISSIONER LEE	MELBOURNE, 24 JULY 2019

Application for approval of the Fonterra and Transport Workers Union (Farm Milk Collection -Victoria) Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Fonterra and Transport Workers Union (Farm Milk Collection -Victoria) 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] The Employer has provided written undertakings. A copy of the undertakings 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 undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings 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] 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.

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

• Clause 18(a) – Annual Leave;

• Clause 20(a) – Personal/ Carer’s Leave;

• Clause 21 – Compassionate Leave;

• Clause 34(b)(iv) – Paternity Leave;

• Clause 35(a) – Notice of Termination by Company;

• Clause 38 – Redundancy;

• Clause 40 – Long Service Leave.

However, noting clause 5 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 March 2022. The nominal expiry date of the Agreement is 31 March 2022

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by Fonterra Australia Pty Ltd for the approval of a proposed enterprise agreement with the Transport Workers Union (Farm Milk Collection -Victoria). The proposed agreement sought to regulate the terms and conditions of employment for employees involved in the collection of farm milk in Victoria. The applicant sought to have the agreement registered under the Fair Work Act 2009 to provide a legally binding framework for employment relations within the specified scope.

The legal issues before the commission centred on whether the proposed agreement complied with the provisions of the Fair Work Act, including whether it contained the necessary "genuine agreement" provisions and whether it met the "better off overall test" (BOOT) as required by the Act. Additionally, the commission had to consider whether the agreement provided for a fair and reasonable balance of rights and obligations between the parties and whether it adhered to the principles of procedural fairness during the bargaining process.

In determining the application, the commission evaluated the evidence presented by both parties regarding the negotiation process and the terms of the agreement. The commission found that the agreement met the requirements of the Act, including the genuine agreement provisions and the BOOT. The commission was satisfied that the agreement provided for a fair and reasonable balance of rights and obligations for the employees and that it was negotiated in good faith. The commission also noted that the process of negotiation and the content of the agreement were in line with the principles of procedural fairness. Consequently, the commission approved the application and registered the proposed agreement as a certified agreement under the Fair Work Act.

The final orders of the commission included the registration of the Fonterra and Transport Workers Union (Farm Milk Collection -Victoria) Agreement 2019 as a certified agreement, effective from the date of registration. The agreement was to govern the employment terms and conditions for employees involved in the collection of farm milk in Victoria, providing a legally binding framework for the parties involved.

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