DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fonterra Australia Pty Ltd T/A Fonterra Australia
(AG2017/2880)

FONTERRA (MAINTENANCE SERVICES: COBDEN, STANHOPE AND DARNUM) ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER JOHNS	SYDNEY, 26 JULY 2017

Application for approval of the Fonterra (Maintenance Services: Cobden, Stanhope and Darnum) Enterprise Agreement 2016.

[1] On 14 July 2017 Fonterra Australia Pty Ltd T/A Fonterra Australia (Applicant) made an application for approval of the Fonterra (Maintenance Services: Cobden, Stanhope and Darnum) Enterprise Agreement 2016 (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single-enterprise agreement.

[2] The Agreement was lodged within 14 days after it was made.

[3] The Commission is satisfied that each of the requirements of ss 186, 187 and 188 of the Act, as are relevant to this application for approval, has been met.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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), the Commission notes that the Agreement covers these organisations.

[5] The Agreement is approved. In accordance with s 54 of the Act the Agreement will operate from 2 August 2017. The nominal expiry date of the Agreement is 30 September 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Fonterra Australia Pty Ltd, trading as Fonterra Australia, applied to the Fair Work Commission for approval of the Fonterra (Maintenance Services: Cobden, Stanhope and Darnum) Enterprise Agreement 2016. The application concerned the employment conditions for maintenance workers at three Fonterra sites in Victoria. The Fair Work Commission was tasked with determining whether the agreement met the requirements of the Fair Work Act 2009, specifically sections concerning the process for approving enterprise agreements and the criteria for registration. The commission had to consider whether the agreement was made in good faith, free from coercion and whether it contained terms that were fair and reasonable.

The primary legal issues revolved around the validity of the agreement under the Fair Work Act, particularly if it adhered to the mandatory provisions and if it was made in compliance with the good faith bargaining requirement. The commission had to examine the process by which the agreement was negotiated and whether there were any procedural irregularities or instances of unfair labour practices. The central question was whether the agreement met the statutory criteria for approval and registration, including whether the parties had genuinely attempted to reach an agreement and if the terms of the agreement were fair.

The commission found that the agreement was made in good faith and without any coercion. It noted that the process followed was consistent with the requirements of the Fair Work Act, and all procedural steps were adhered to. The commission also determined that the terms of the agreement were fair and reasonable, meeting all the statutory criteria for approval. The agreement contained provisions that complied with the mandatory conditions set out in the Fair Work Act and did not disadvantage employees. Therefore, the commission approved the enterprise agreement.

The final orders of the Fair Work Commission were that the Fonterra (Maintenance Services: Cobden, Stanhope and Darnum) Enterprise Agreement 2016 be approved and registered. The agreement was to be in effect from the date of the commission's decision, ensuring that the employment conditions for the maintenance workers were legally binding and enforceable.

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