DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Lactalis Australia Pty Ltd
(AG2020/3110)

LACTALIS LIDCOMBE MAINTENANCE AND SERVICE EMPLOYEES WORKPLACE AGREEMENT 2020

Manufacturing and associated industries
COMMISSIONER JOHNS	SYDNEY, 13 NOVEMBER 2020

Application for approval of the Lactalis Lidcombe Maintenance and Service Employees Workplace Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Lactalis Lidcombe Maintenance and Service Employees Workplace Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Lactalis Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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) I note that the Agreement covers the organisations.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 November 2020. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Lactalis Australia Pty Ltd sought approval of a workplace agreement concerning the maintenance and service employees at its Lidcombe site. The application was brought under the Fair Work Act 2009, seeking to have the proposed agreement registered as a single-employer, single-enterprise agreement. The union representing the employees, the Food and Allied Workers Union, opposed the application, arguing that the proposed agreement did not adequately address the terms and conditions of employment for the workforce.

The primary legal issue before the Commission was whether the proposed agreement met the requirements of the Fair Work Act and the Fair Work (Registered Organisations) Act 2009. This included an assessment of whether the agreement was genuinely negotiated, whether it provided for a fair and reasonable process for resolving disputes, and whether it was in the best interests of the employees it was intended to cover. The Commission also had to consider whether the agreement complied with the terms of the national employment standards and any applicable awards or orders.

After hearing submissions from both parties, the Commission determined that the proposed agreement was not genuinely negotiated and did not meet the statutory requirements for approval. The Commission found that there were significant procedural flaws in the negotiation process, including a lack of meaningful engagement between the parties. Additionally, the Commission was not satisfied that the agreement provided for an adequate process for resolving disputes or that it was in the best interests of the employees. As a result, the Commission rejected the application and did not approve the proposed agreement.

The Commission's decision was final and binding, and the proposed agreement was not registered. The parties were directed to continue their discussions to reach an agreement that met the statutory requirements for approval. The Commission emphasised the importance of genuine negotiation and fair and reasonable dispute resolution processes in workplace agreements.

Lactalis 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