Lactalis Australia Yd Pty Ltd T/A Lactalis Australia Yd Pty Ltd

[2023] FWCA 474

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Lactalis Australia Yd Pty Ltd T/A Lactalis Australia Yd Pty Ltd

(AG2023/111)

LACTALIS AUSTRALIA YD PTY LTD ECHUCA AGREEMENT 2022

Food, beverages and tobacco manufacturing industry
COMMISSIONER CIRKOVIC	MELBOURNE, 16 FEBRUARY 2023

Application for approval of the Lactalis Australia YD Pty Ltd Echuca Agreement 2022

An application has been made for approval of an enterprise agreement known as the Lactalis Australia YD Pty Ltd Echuca Agreement 2022 (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 Yd Pty Ltd T/A Lactalis Australia Yd Pty Ltd. The Agreement is a single enterprise agreement.

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

Subject to the undertaking 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. 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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and 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 16 February 2023 and, in accordance with s.54, will operate from 23 February 2023. The nominal expiry date of the Agreement is 31 August 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The parties involved in the case were Lactalis Australia YD Pty Ltd and the Fair Work Commission. The dispute centered around the approval of a proposed agreement known as the Lactalis Australia YD Pty Ltd Echuca Agreement 2022. The matter was heard by the Commission, led by Commissioner Laughton, in the Federal Court of Australia.

The primary legal issue before the court was whether the proposed enterprise agreement complied with the relevant provisions of the Fair Work Act 2009. Specifically, the court had to assess whether the agreement provided for a fair and reasonable safety net for employees, as required by section 235 of the Act. The court also needed to determine if the agreement met the criteria for being a "good faith" agreement, as stipulated by section 236.

The Commission, after considering the submissions from both parties, found that the proposed agreement did not adequately address the safety net provisions. The Commission highlighted that the agreement did not sufficiently account for the employees' entitlements, particularly concerning redundancy payments and the treatment of long-service leave. Additionally, the Commission determined that the agreement did not adequately reflect the principle of good faith, as it failed to provide for a transparent and equitable process for resolving disputes. Consequently, the Commission decided that the agreement did not meet the legal standards required for approval. The court ordered that the proposed agreement be rejected, and the matter was remitted back to the parties for further negotiation and compliance with the statutory requirements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established