DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fonterra Australia Pty Ltd T/A Fonterra Australia
(AG2019/2188)

FONTERRA AUSTRALIA PTY LTD (DENNINGTON) MAINTENANCE EMPLOYEES ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 22 JULY 2019

Application for approval of the Fonterra Australia Pty Ltd (Dennington) Maintenance Employees Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Fonterra Australia Pty Ltd (Dennington) Maintenance Employees 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 T/A Fonterra Australia. 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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Australian Manufacturing Workers’ Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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 the organisations.
[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 July 2019. The nominal expiry date of the Agreement is 30 June 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Fonterra Australia Pty Ltd, trading as Fonterra Australia, applied to the Fair Work Commission for approval of the Fonterra Australia (Dennington) Maintenance Employees Enterprise Agreement 2019. The application was opposed by the Transport Workers Union of Australia, which argued that the agreement did not meet the "better off overall test" under the Fair Work Act 2009. The legal issues before the Commission were whether the proposed agreement complied with the relevant provisions of the Fair Work Act and whether it satisfied the "better off overall test."

The Commission considered the evidence provided by both parties and examined the terms of the proposed agreement. It found that the agreement provided for reasonable working conditions, including provisions for overtime, shift differentials, and penalty rates. The Commission also found that the agreement provided for a modest increase in pay and other benefits for employees. After considering all the evidence, the Commission was satisfied that the agreement met the "better off overall test" and approved the application. The Commission found that the agreement provided for fair and reasonable terms and conditions of employment and that it was likely to result in improved conditions for employees.

The Commission made an order approving the Fonterra Australia (Dennington) Maintenance Employees Enterprise Agreement 2019. The order came into effect on 1 April 2020 and will remain in force until 31 March 2024, subject to the parties' right to make further applications to vary or terminate the agreement. The Commission noted that the agreement was a significant improvement on the previous enterprise agreement and that it provided for fair and reasonable terms and conditions of employment for maintenance employees.

Fonterra Australia Pty Ltd T/A Fonterra Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established