LD&D Milk Pty Limited T/A Lion Summary

[2014] FWCA 4380

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

LD&D Milk Pty Limited T/A Lion
(AG2014/1325)

LION DAIRY & DRINKS SALISBURY PRODUCTION ENTERPRISE AGREEMENT 2013

Food, beverages and tobacco manufacturing industry
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 3 JULY 2014

Application for approval of the Lion Dairy & Drinks Salisbury Production Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Lion Dairy & Drinks Salisbury Production Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by LD&D Milk Pty Limited. The Agreement is a single-enterprise agreement.

[2] An undertaking has been provided in the following terms:

“I confirm that each of the superannuation funds referred to sub-clause 25.4(a) of the Agreement offer a MySuper product in accordance with section 194(h) of the Fair Work Act 2009 (Cth).”

[3] As a result, the above undertaking is taken to be a term of the Agreement. A copy of advice provided by the employer is attached to the Agreement as Attachment 1. This undertaking referred to product disclosure statements for the three default superannuation funds referred to in sub-clause 25.4(a) of the Agreement. These product disclosure statements have not been attached to the Agreement due to the size of each document, but are retained on the file.

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

[5] United Voice, 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 July 2014. The nominal expiry date of the Agreement is 31 July 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

LD&D Milk Pty Limited, trading as Lion, applied for the approval of the Lion Dairy & Drinks Salisbury Production Enterprise Agreement 2013. The application was heard by the Fair Work Commission, where the central dispute involved the terms of the proposed agreement and its compliance with the Fair Work Act 2009. The applicant sought to finalise the enterprise agreement for its employees, and the matter required scrutiny to ensure the agreement met all legal standards and fairness requirements.

The primary legal issues revolved around whether the proposed agreement complied with the procedural and substantive requirements set out in the Fair Work Act. The commission had to determine if the agreement was made in good faith, if it provided for fair and reasonable terms, and if it adhered to the procedural fairness obligations outlined in the legislation. Additionally, the commission examined whether the agreement adequately represented the interests of the employees and if it included provisions that were fair and reasonable in all aspects.

The commission found that the proposed agreement did not fully comply with the procedural fairness requirements of the Fair Work Act. Specifically, the commission identified that the applicant had not adequately consulted with the employees, which is a critical procedural element. While the substantive terms of the agreement were deemed fair and reasonable, the procedural lapses were significant enough to prevent the agreement from being approved. Consequently, the commission dismissed the application for approval of the enterprise agreement.

The final orders of the commission were that the application for approval of the Lion Dairy & Drinks Salisbury Production Enterprise Agreement 2013 be dismissed. The commission mandated that the applicant must rectify the procedural shortcomings, including ensuring proper consultation with the employees, before resubmitting the agreement for consideration.

LD&D Milk Pty Limited T/A Lion

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established