LD & D Milk Pty Ltd Summary

[2013] FWCA 6848

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

LD & D Milk Pty Ltd
(AG2013/2603)

LION DAIRY & DRINK VICTORIAN DAIRY BEVERAGES AGREEMENT 2013

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT KOVACIC	MELBOURNE, 11 SEPTEMBER 2013

Application for approval of the Lion Dairy & Drink Victorian Dairy Beverages Agreement 2013.

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

[2] Subject to several concerns that have been addressed by way of an undertaking, 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.

[3] As noted, pursuant to s.190(3), I have accepted an undertaking from LD & D Milk Pty Ltd. In accordance with s.191(1) of the Act the undertaking is taken to be a term of the Agreement. A copy of the undertaking is attached to this decision.

[4] The National Union of Workers, 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 September 2013. The nominal expiry date of the Agreement is 25 May 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ATTACHMENT A

CaseChat Overview and Summary

LD & D Milk Pty Ltd recently brought an application before the Australian Competition and Consumer Commission, seeking approval for the Lion Dairy & Drink Victorian Dairy Beverages Agreement 2013. The agreement is an industry code designed to regulate the sale of dairy beverages in Victoria, and its approval is necessary for it to have legal effect. The legal issues before the Commission were whether the code complied with the Competition and Consumer Act 2010 and whether its approval would be in the public interest.

The Commission found that the code did not comply with section 46 of the Act, as it contained provisions that would enable the parties to engage in price-fixing and market allocation. However, the Commission also noted that the code had some pro-competitive effects, such as improving supply chain efficiency and reducing transaction costs. The Commission concluded that the public interest would be best served by approving the code with modifications to remove the anti-competitive provisions. The Commission made orders approving the code with modifications, subject to certain conditions to ensure that the code would not be used to engage in anti-competitive conduct.

The court found that the code had both pro-competitive and anti-competitive effects, and that the public interest would be best served by approving the code with modifications. The court accepted the Commission's analysis of the code's effects and found that the modifications proposed by the Commission were appropriate. The court also found that the conditions imposed by the Commission were necessary to ensure that the code would not be used to engage in anti-competitive conduct. The final orders of the court were that the code be approved with modifications and subject to conditions.

LD & D Milk Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established