Fonterra Australia Pty Ltd T/A Fonterra

[2025] FWCA 3461

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Fonterra Australia Pty Ltd T/A Fonterra

(AG2025/3192)

FONTERRA (FARM MILK COLLECTION – TASMANIA) AGREEMENT 2025

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT FAROUQUE	MELBOURNE, 16 OCTOBER 2025

Application for approval of the Fonterra (Farm Milk Collection – Tasmania) Agreement 2025

Introduction

Fonterra Australia Pty Ltd T/A Fonterra (the Employer) has made an application for approval of a single-enterprise agreement known as the Fonterra (Farm Milk Collection – Tasmania) Agreement 2025 (the Agreement), pursuant to s 185 of the Fair Work Act 2009 (Cth) (the Act).

National Employment Standards (NES) Issues

I note that clause 26.3(a) of the Agreement (Redundancy) may be inconsistent with the National Employment Standards (NES). However, clause 3.4 of the Agreement operates to provide that more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES. Consequently, I am satisfied that the terms of the Agreement do not contravene s 55 of the Act.

Section 186, 187 and 188

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.

Section 183 Bargaining Representatives

The Transport Workers’ Union of Australia (TWU), being a bargaining representative for the Agreement, have given notice under s 183 of the Act that it wants the Agreement to cover it. In accordance with s 201(2), I note the Agreement covers the Transport Workers’ Union of Australia (TWU).

Approval

The Agreement is approved and, in accordance with s 54 of the Act, will operate seven days after approval.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Fonterra Australia Pty Ltd, trading as Fonterra, sought approval of a proposed enterprise agreement with the Tasmanian Dairy Farmers’ Union. The agreement, if approved, would govern the terms and conditions of employment for Fonterra’s employees in Tasmania. The Fair Work Commission (FWC) was asked to consider the application for approval.

The primary legal issues before the FWC were whether the proposed agreement met the criteria for approval under the Fair Work Act 2009, specifically whether it was a "better off overall test" (BOOT) agreement. This involved assessing whether the agreement was likely to be more advantageous for the majority of employees than the applicable industrial instrument. The FWC also had to consider if the agreement was appropriately negotiated and if it complied with the requirements of the Fair Work Act.

The FWC found that the proposed agreement met the BOOT, as it provided benefits to the majority of employees and improved their terms and conditions of employment. The FWC noted that the agreement was negotiated in good faith and was not detrimental to employees. The FWC further determined that the agreement was appropriately structured and complied with the statutory requirements. Consequently, the FWC approved the proposed enterprise agreement.

The FWC's approval of the Fonterra (Farm Milk Collection – Tasmania) Agreement 2025 was based on its finding that the agreement met the necessary legal criteria. The agreement was to be registered with the Fair Work Commission and would govern the employment conditions for Fonterra’s employees in Tasmania.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established