Lactalis Australia Ltd T/A Lactalis Australia

[2023] FWCA 1768

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Lactalis Australia Ltd T/A Lactalis Australia

(AG2023/1601)

LACTALIS AUSTRALIA CLARENCE GARDENS - UNITED WORKERS UNION ENTERPRISE AGREEMENT – 2023-2026

Food, beverages and tobacco manufacturing industry
COMMISSIONER PLATT	ADELAIDE, 16 JUNE 2023

Application for approval of the Lactalis Australia Clarence Gardens - United Workers Union Enterprise Agreement – 2023-2026

An application has been made for approval of an enterprise agreement known as the Lactalis Australia Clarence Gardens - United Workers Union Enterprise Agreement – 2023-2026 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Lactalis Australia Ltd T/A Lactalis Australia (the Applicant). The agreement is a single enterprise agreement.

The matter was allocated to my Chambers on 8 June 2023.

The United Workers’ Union, 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) of the Act I note that the Agreement covers this organisation.

I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 28 February 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the court involved Lactalis Australia Limited, trading as Lactalis Australia, which sought approval for the Lactalis Australia Clarence Gardens Enterprise Agreement for the years 2023 to 2026. The United Workers Union (UWU) was involved in the negotiations for this agreement. The dispute centred on whether the agreement, which contained provisions that deviated from the minimum standards set out in the Dairy and Food Award 2010, was fair and reasonable under the Fair Work Act 2009.

The primary legal issue was whether the provisions of the enterprise agreement, which offered less favourable terms than the minimum standards, were justifiable under section 234 of the Act. This section allows for the making of an agreement that provides for terms and conditions that are less favourable than the applicable award if the agreement is fair and reasonable. The court had to assess if the provisions were justifiable as necessary to achieve a legitimate aim and whether the agreement as a whole was fair and reasonable.

The court reviewed the submissions and evidence provided by both parties and examined the provisions of the agreement that varied from the award. The court found that the provisions in question were necessary to allow the business to operate effectively and competitively. The court also concluded that the agreement as a whole was fair and reasonable, taking into account the need for flexibility in the workplace and the benefits provided to the employees. Consequently, the court approved the agreement, allowing it to come into effect from the specified period.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established