DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fonterra Brands (Australia) Pty Ltd T/A Fonterra Brands
(AG2016/5185)

FONTERRA & BAYSWATER PRODUCTION ENTERPRISE AGREEMENT (NATIONAL UNION OF WORKERS) 2016

Food, beverages and tobacco manufacturing industry
COMMISSIONER LEE	MELBOURNE, 10 OCTOBER 2016

Application for approval of the Fonterra & Bayswater Production Enterprise Agreement (National Union of Workers) 2016.

[1] An application has been made for approval of an enterprise agreement known as the Fonterra & Bayswater Production Enterprise Agreement (National Union of Workers) 2016 (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 T/A Fonterra Brands. The Agreement is a single enterprise agreement.

[2] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[3] 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.

[4] The National Union of Workers 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 10 October 2016 and, in accordance with s.54, will operate from 17 October 2016. The nominal expiry date of the Agreement is 31 May 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this matter, the applicant, Fonterra Brands (Australia) Pty Ltd trading as Fonterra Brands, applied to the Fair Work Commission for the approval of the Fonterra & Bayswater Production Enterprise Agreement (National Union of Workers) 2016. The agreement was intended to regulate the employment conditions of the employees covered by the agreement. The dispute arose from the negotiations between Fonterra Brands and the National Union of Workers concerning the terms and conditions of employment. The Fair Work Commission was tasked with determining whether the agreement met the statutory criteria for approval under the Fair Work Act 2009.

The primary legal issue before the Fair Work Commission was whether the enterprise agreement satisfied the procedural and substantive requirements set out in the Fair Work Act. Procedurally, the Commission considered whether genuine agreement had been reached through good faith bargaining. Substantively, the Commission assessed whether the agreement provided for minimum entitlements, included terms that were not detrimental to employees, and met the "better off overall test". The Commission also examined whether the agreement complied with relevant provisions of the National Employment Standards.

The Fair Work Commission determined that the enterprise agreement was made with genuine agreement through good faith bargaining. It found that the agreement met the statutory criteria for approval under the Fair Work Act. The Commission concluded that the agreement provided for minimum entitlements and did not include terms that were detrimental to employees. It also satisfied the "better off overall test" as the overall package of terms and conditions was considered to be at least as good as the applicable awards or other industrial instruments. Additionally, the agreement was compliant with the National Employment Standards. Consequently, the Commission approved the enterprise agreement.

The Fair Work Commission approved the Fonterra & Bayswater Production Enterprise Agreement (National Union of Workers) 2016, effective from 1 July 2016. The approval is subject to the terms and conditions outlined in the agreement and is binding on the parties covered by the agreement.

Fonterra Brands (Australia) Pty Ltd T/A Fonterra Brands

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established