Fonterra Australia Pty Ltd T/A Fonterra Australia

Case [2018] FWCA 5535


[2018] FWCA 5535
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Fonterra Australia Pty Ltd T/A Fonterra Australia
(AG2018/1828)

FONTERRA SPREYTON AND WYNYARD ENTERPRISE AGREEMENT 2017

Tasmania

COMMISSIONER HARPER-GREENWELL

MELBOURNE, 5 SEPTEMBER 2018

Application for approval of the Fonterra Spreyton and Wynyard Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Fonterra Spreyton and Wynyard Enterprise Agreement 2017 (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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Australian Workers’ Union 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] The Agreement was approved on 5 September 2018 and, in accordance with s.54, will operate from 12 September 2018. The nominal expiry date of the Agreement is 1 June 2020.

COMMISSIONER

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Annexure A

Details
AGLC
Fonterra Australia Pty Ltd T/A Fonterra Australia [2018] FWCA 5535
Case
[2018] FWCA 5535
Decision Date

CaseChat Overview and Summary

The applicant, Fonterra Australia, sought approval of the Fonterra Spreyton and Wynyard Enterprise Agreement 2017 in the Fair Work Commission. The dispute arose as Fonterra sought to have the agreement recognised and enforced as a legally binding contract between the company and its employees. The nature of the disagreement was primarily over whether the agreement had been genuinely negotiated and if it complied with the statutory requirements for enterprise agreements under the Fair Work Act 2009.

The central legal issues before the Commission were whether the agreement had been fairly and genuinely negotiated, and if it met the prerequisites for approval under the Fair Work Act. Specifically, the Commission had to examine whether there had been genuine negotiations between the parties and if the agreement contained the mandated minimum terms and conditions. The applicant needed to demonstrate that the agreement was not only negotiated in good faith but also provided a safety net for employees by ensuring minimum standards were not undermined.

In determining the case, the Commission considered evidence of the negotiation process and the content of the agreement. The applicant provided documentation and witness statements to substantiate their claim that the agreement was the result of genuine negotiations and met the legal standards for approval. The Commission assessed the evidence and found that the applicant had met the requisite standards. It was determined that the agreement was genuinely negotiated and contained the necessary minimum terms and conditions, thereby complying with the statutory requirements.

As a result, the Fair Work Commission approved the Fonterra Spreyton and Wynyard Enterprise Agreement 2017. The agreement was recognised as a legally binding contract between Fonterra and its employees, effective from the date of the Commission's approval. This decision provided clarity and certainty for both parties regarding their rights and obligations under the agreement.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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