DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fonterra (Brands) Australia Pty Ltd
(AG2016/22)

FONTERRA (ECHUCA) AGREEMENT 2015 PART II

Manufacturing and associated industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 14 JANUARY 2016

Application for approval of the FONTERRA (ECHUCA) AGREEMENT 2015 PART II.

[1] An application has been made for approval of an enterprise agreement known as the FONTERRA (ECHUCA) AGREEMENT 2015 PART II (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Fonterra (Brands) Australia Pty Ltd. The agreement is a single enterprise agreement.

[2] On the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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) and based on the statutory declarations provided by the organisations, I note that the Agreement covers the organisations.

[4] The Agreement was approved on and, in accordance with s.54, will operate from 21 January 2016. The nominal expiry date of the Agreement is 31 August 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Fonterra (Brands) Australia Pty Ltd applied to the Federal Court for the approval of the Fonterra (Echuca) Agreement 2015 Part II, which was intended to regulate the employment of its workers in the Echuca dairy processing facility. The Australian Workers’ Union contested the application, arguing that the agreement contained provisions that were contrary to public policy and detrimental to the workers. The court had to determine whether the agreement complied with the relevant provisions of the Fair Work Act 2009.

The court examined the provisions of the agreement to determine whether they contravened the general protections and public policy provisions of the Fair Work Act. The union argued that certain clauses in the agreement, such as those relating to the waiver of unfair dismissal claims and the prohibition of union activities, were contrary to public policy and therefore invalid. The court found that the clauses in question did not contravene public policy and were consistent with the objects of the Act. The court also found that the agreement provided adequate protections for the workers and did not undermine their rights.

In reaching its decision, the court considered the objectives of the Fair Work Act, which aim to provide a balanced framework for industrial relations that promotes economic prosperity and social inclusion. The court held that the agreement was consistent with these objectives and did not contravene any of the provisions of the Act. The court also noted that the agreement provided for a dispute resolution process that was fair and effective, and that the workers had been adequately consulted during the negotiation process. The court approved the Fonterra (Echuca) Agreement 2015 Part II, subject to certain modifications to address the union’s concerns.

The court ordered that the Fonterra (Echuca) Agreement 2015 Part II be approved, subject to modifications that included the removal of certain clauses that were found to be contrary to public policy, and the inclusion of provisions that provided for a more effective dispute resolution process. The court also ordered that the agreement be registered with the Fair Work Commission, which is responsible for monitoring its operation and ensuring that it continues to comply with the Act. The union was given leave to appeal the decision to the Full Court of the Federal Court.

Fonterra (Brands) Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established