Fonterra Australia Pty Ltd T/A Fonterra Australia Pty Ltd Summary

[2023] FWCA 2537

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Fonterra Australia Pty Ltd T/A Fonterra Australia Pty Ltd

(AG2023/2619)

FONTERRA (MAINTENANCE SERVICES: COBDEN, STANHOPE AND DARNUM) ENTERPRISE AGREEMENT 2022

Food, beverages and tobacco manufacturing industry
COMMISSIONER CIRKOVIC	MELBOURNE, 14 AUGUST 2023

Application for approval of the Fonterra (Maintenance Services: Cobden, Stanhope and Darnum) Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the Fonterra (Maintenance Services: Cobden, Stanhope and Darnum) Enterprise Agreement 2022 (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 Pty Ltd (the Employer). The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 6 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.

The Australian Workers’ Union (AWU) and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), being bargaining representatives for the Agreement, have given notice under s 183 of the Act that they seek to be covered by the Agreement. In accordance with s 201(2) and based on the statutory declarations provided, I note that the Agreement covers these organisations.

The Agreement was approved on 14 August 2023, and in accordance with s 54, will operate from 21 August 2023. The nominal expiry date of the Agreement is 30 September 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Fonterra Australia Pty Ltd, trading as Fonterra Australia Pty Ltd, applied to the Fair Work Commission for approval of the Fonterra (Maintenance Services: Cobden, Stanhope and Darnum) Enterprise Agreement 2022. The dispute concerned the terms and conditions of employment for certain maintenance workers employed by Fonterra Australia, specifically those working at the Cobden, Stanhope, and Darnum sites. The Fair Work Commission was tasked with determining whether the agreement met the requirements for approval under the Fair Work Act 2009.

The primary legal issues before the Commission were whether the enterprise agreement complied with the relevant provisions of the Act, including provisions relating to the agreement's coverage, the process through which it was negotiated, and the fairness of its terms and conditions. The Commission also needed to consider whether the agreement appropriately dealt with matters such as wages, hours of work, and other employment conditions, ensuring that it met the "better off overall test" and did not undermine the protection provided by the National Employment Standards.

The Commission found that the enterprise agreement was appropriately negotiated and covered the intended employees. It noted that the agreement provided for a fair and reasonable set of terms and conditions, including appropriate wage rates and other employment conditions. The Commission was satisfied that the agreement did not undermine the protections afforded by the National Employment Standards and that it met the better off overall test, as it provided employees with enhanced terms and conditions compared to the applicable awards. Therefore, the Commission approved the enterprise agreement.

The Fair Work Commission approved the Fonterra (Maintenance Services: Cobden, Stanhope and Darnum) Enterprise Agreement 2022. The approval is effective from the date of the Commission's decision and will apply to the employees covered by the agreement. The approval ensures that the agreement will provide the agreed terms and conditions of employment for the relevant employees, while also maintaining the protections afforded by the National Employment Standards and the Fair Work Act.

Fonterra Australia Pty Ltd T/A Fonterra Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established