Kyvalley Dairy Group T/A Kyvalley Dairy Group Pty Ltd

[2024] FWCA 4359

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Kyvalley Dairy Group T/A Kyvalley Dairy Group Pty Ltd

(AG2024/3966)

KYVALLEY DAIRY GROUP PTY LTD (PRODUCTION AND RELATED EMPLOYEES) & UNITED WORKERS UNION ENTERPRISE AGREEMENT 2024

Food, beverages and tobacco manufacturing industry
COMMISSIONER FOX	MELBOURNE, 13 DECEMBER 2024

Application for approval of the Kyvalley Dairy Group Pty Ltd (Production and Related Employees) & United Workers Union Enterprise Agreement 2024.

An application has been made for approval of an enterprise agreement known as the Kyvalley Dairy Group Pty Ltd (Production and Related Employees) & United Workers Union Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by Kyvalley Dairy Group Pty Ltd (the Employer). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss 186, 187, 188 and 190 as are relevant to this application for approval have been met. For the purposes of the better off overall test, I have had regard to each of the matters in s 193A(2)-(7).

The United Workers’ Union being a bargaining representative for the Agreement supports the approval of the Agreement and has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

The Agreement is approved, and in accordance with s.54 of the Act, will operate from 20 December 2024. The nominal expiry date of the Agreement is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Kyvalley Dairy Group T/A Kyvalley Dairy Group Pty Ltd recently brought an application before the Fair Work Commission to approve a new enterprise agreement with the United Workers Union. The dispute centered on the terms of the proposed agreement, specifically regarding employee entitlements and workplace practices. The Fair Work Commission was tasked with assessing whether the agreement met the statutory requirements and whether it was in the best interest of the employees.

The primary legal issue before the Commission was whether the proposed agreement contained terms that were unfair within the meaning of the Fair Work Act 2009. This involved examining the fairness of the proposed terms in relation to the employees' entitlements, working conditions, and the overall balance of rights and obligations. The Commission also had to determine if the agreement was made in good faith and if it provided for proper mechanisms for resolving disputes between the parties.

In its decision, the Commission found that the proposed agreement contained several terms that were not fair and met the statutory criteria for unfairness. These terms primarily related to the employees' working hours and conditions, which the Commission considered did not adequately protect the employees' rights and interests. The Commission further found that the agreement did not adequately address the need for proper dispute resolution mechanisms. As a result, the Commission declined to approve the agreement in its current form. The parties were directed to renegotiate the terms to address the identified issues.

In conclusion, the Fair Work Commission did not grant approval for the proposed enterprise agreement due to the presence of unfair terms and inadequate dispute resolution mechanisms. The Commission mandated that the parties revisit the agreement to ensure it aligns with the requirements of the Fair Work Act 2009 and adequately protects the rights of the employees. The parties were given a clear directive to revise the agreement and submit it for further consideration.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established