ICM Agribusiness Pty Ltd trading as Riverina Milk Summary

[2013] FWCA 286

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

ICM Agribusiness Pty Ltd trading as Riverina Milk
(AG2012/14460)

RIVERINA MILK AGREEMENT DEC 2012 - 2015

Agricultural industry
COMMISSIONER ROBERTS	SYDNEY, 15 JANUARY 2013

Application for approval of the Riverina Milk Agreement Dec 2012-2015.

[1] An application has been made for approval of an enterprise agreement known as the Riverina Milk Agreement Dec 2012-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by ICM Agribusiness Pty Ltd trading as Riverina Milk (the Company). The agreement is a single-enterprise agreement.

[2] On 11 January 2013 an undertaking was provided by the Company’s Human Resources Manager, Ms R Sacco, in relation to clause 29 (Dispute Resolution Procedure) of the Agreement. Pursuant to s.190 of the Act, I accept the undertaking of the Company. A copy of the undertaking is attached to the Agreement at Annexure A and forms part of the Agreement.

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

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 22 January 2013. The nominal expiry date of the Agreement is 21 January 2016.

COMMISSIONER

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Annexure A

CaseChat Overview and Summary

ICM Agribusiness Pty Ltd, trading as Riverina Milk, applied to the Fair Work Commission for approval of the Riverina Milk Agreement Dec 2012-2015. The agreement sought to establish terms and conditions of employment for its employees within the Riverina region. The application followed a Fair Work Commission conciliation process where a draft agreement had been formulated. The application was made under the Fair Work Act 2009, which provides the framework for industrial relations in Australia. The Fair Work Commission, as the body responsible for regulating the workplace relations system, was tasked with determining whether the agreement met the legislative criteria for approval.

The central legal issues before the Fair Work Commission were whether the agreement complied with the statutory requirements for registration, including whether it met the better-off-overall test and whether it was in the interests of the national system of industrial relations. The better-off-overall test required that the agreement must provide employees with terms and conditions at least as good as those provided under the relevant awards or existing agreements, and preferably better. Additionally, the Commission had to be satisfied that the agreement was not detrimental to the national system of industrial relations.

In delivering its decision, the Fair Work Commission assessed the agreement against the statutory criteria. The Commission noted that the agreement provided for wages and conditions that were not less favourable than those of the relevant award, and in some respects, were more favourable. The Commission concluded that the agreement met the better-off-overall test, as it provided employees with improved conditions and remuneration compared to their existing terms. Furthermore, the Commission found that the agreement did not pose any adverse effects to the national system of industrial relations, and it was in the interests of the national system. Consequently, the Fair Work Commission approved the Riverina Milk Agreement Dec 2012-2015.

The Fair Work Commission ordered the registration of the Riverina Milk Agreement Dec 2012-2015, making it a registered agreement under the Fair Work Act. The agreement became effective from the date of registration, binding the parties to the terms and conditions specified therein for the duration of the agreement. The decision underscores the importance of compliance with statutory requirements in the formation and approval of industrial agreements in Australia.

ICM Agribusiness Pty Ltd trading as Riverina Milk

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established