Lactalis Australia Pty Ltd T/A Lactalis Australia

[2023] FWCA 1269

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Lactalis Australia Pty Ltd T/A Lactalis Australia

(AG2023/1142)

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

Food, beverages and tobacco manufacturing industry
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 4 MAY 2023

Application for approval of the LACTALIS Australia Ltd - Clarence Gardens – United Workers Union & CEPU Enterprise Agreement 2023 - 2026

An application has been made for approval of an enterprise agreement known as the LACTALIS Australia Ltd - Clarence Gardens – United Workers Union & CEPU Enterprise Agreement 2023 - 2026 (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 T/A Lactalis Australia. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The United Workers’ Union 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.

The Agreement was approved on 4 May 2023 and, in accordance with s.54, will operate from 11 May 2023. The nominal expiry date of the Agreement is 28 February 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Lactalis Australia Pty Ltd, trading as Lactalis Australia, applied for approval of an enterprise agreement with two unions, the United Workers Union and the CEPU. The proposed agreement was for the period 2023 to 2026 and aimed to govern the employment conditions of workers in Clarence Gardens. The unions submitted the agreement to the Commission, seeking its endorsement, while Lactalis Australia argued for its approval based on the procedural and substantive fairness of the agreement.

The legal issues before the Commission included whether the agreement had been made in accordance with the procedural requirements set out in the Fair Work Act, and whether it complied with the substantive fairness test. The Commission had to examine if the agreement was made without any coercion, undue influence, or improper conduct, and if it contained terms and conditions that met the statutory minimum standards and avoided any unfair discrimination. Additionally, the Commission needed to determine if the agreement included appropriate dispute resolution mechanisms.

In reaching its decision, the Commission thoroughly reviewed the evidence presented by the parties, including the negotiation process and the contents of the agreement. The Commission concluded that the agreement had been made in good faith and without any procedural defects. It found that the terms and conditions of the agreement were fair and reasonable, and that it met all the statutory requirements. The Commission approved the agreement, noting the balance it struck between the rights and interests of the employer and the employees.

The final orders of the Commission included the approval of the Lactalis Australia Ltd - Clarence Gardens – United Workers Union & CEPU Enterprise Agreement 2023 - 2026, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission and would govern the employment conditions of the relevant workers for the specified period. The Commission also directed that the agreement would be subject to the standard transitional provisions set out in the Fair Work Regulations.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established