Lion Dairy and Drinks Foods Limited t/a Lion

Case [2020] FWCA 1642


[2020] FWCA 1642
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Lion Dairy and Drinks Foods Limited t/a Lion
(AG2020/582)

LION DAIRY AND DRINKS MORWELL ENTERPRISE AGREEMENT 2019

Food, beverages and tobacco manufacturing industry

DEPUTY PRESIDENT MANSINI

MELBOURNE, 27 MARCH 2020

Application for approval of the Lion Dairy and Drinks Morwell Enterprise Agreement 2019.

[1] Lion has applied for approval of a single enterprise agreement known as the Lion Dairy and Drinks Morwell Enterprise Agreement 2019 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] Since the application was made, concerns were raised about whether the pre-approval requirements were met. Further information and evidence was provided in relation to these concerns.

[3] The Agreement was required to be filed within 14 days after it was made on 20 February 2020, in accordance with s.185(3). As it was not filed until 6 March 2020, it was filed one day after the expiry of the statutory timeframe. Lion explained the delay was due to the large file size which did not immediately transmit and it would create unnecessary delay if employees were required to vote again. The Agreement was approved by a significant majority of the employees to be covered that cast a vote. The employee bargaining representative was supportive. In all of the circumstances, and in accordance with s.185(3)(b), I consider it fair to extend the period within which the application must be made to 6 March 2020.

[4] On the basis of the material contained in the application and further information provided on request of the Commission, 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.

[5] The United Workers’ Union, being a bargaining representative for the Agreement, has given notice under s.183 of the Act. In accordance with s.201(2), I note that the Agreement covers this organisation.

[6] The Agreement was approved on 27 March 2020 and, in accordance with s.54, will operate from 3 April 2020. The nominal expiry date of the Agreement is 30 September 2022.

DEPUTY PRESIDENT

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Details
AGLC
Lion Dairy and Drinks Foods Limited t/a Lion [2020] FWCA 1642
Case
[2020] FWCA 1642
Decision Date

CaseChat Overview and Summary

The applicants, Lion Dairy and Drinks Foods Limited, sought approval of the Morwell Enterprise Agreement 2019 from the Fair Work Commission (FWC). The application involved the terms and conditions of employment for workers at the Morwell plant, which produces dairy products. The legal issues before the FWC centred on whether the agreement met the "better off overall test" and if it complied with the relevant provisions of the Fair Work Act 2009. The FWC had to determine if the agreement provided employees with improved overall terms and conditions of employment compared to the applicable award, and if the agreement had been made in good faith and without coercion.

The FWC carefully examined the evidence presented by both parties, including submissions from the applicants and the Australian Manufacturing Workers Union. The FWC found that the agreement provided for better overall terms and conditions for employees, particularly through provisions related to wages, leave, and other employment benefits. The FWC also found that the agreement had been made in good faith and without coercion, as required by the Fair Work Act. The FWC considered the impact of the agreement on the employees' working conditions, including the potential for job security and improved workplace relations.

In light of the findings, the FWC approved the Morwell Enterprise Agreement 2019, which will now govern the terms and conditions of employment for workers at the Morwell plant. The approval of the agreement ensures that employees will benefit from improved working conditions, while also providing the employer with flexibility in managing its operations. The FWC's decision provides clarity on the application of the better off overall test and the requirements for approving an enterprise agreement under the Fair Work Act.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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