Lion-Dairy & Drinks Pty Ltd Summary

[2014] FWCA 4503

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Lion-Dairy & Drinks Pty Ltd
(AG2014/1314)

LION DAIRY & DRINKS (CAMPBELLFIELD OPERATIONS) AND NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2014

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT KOVACIC	MELBOURNE, 7 JULY 2014

Application for approval of the Lion Dairy & Drinks (Campbellfield Operations) and National Union of Workers Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Lion Dairy & Drinks (Campbellfield Operations) and National Union of Workers Enterprise Agreement 2014 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Lion-Dairy & Drinks Pty Ltd. The Agreement is a single-enterprise agreement.

[2] Subject to concerns that have been addressed by way of undertakings, 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 undertakings from Lion-Dairy & Drinks Pty Ltd. In accordance with s.191(1) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings are 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 14 July 2014. The nominal expiry date of the Agreement is 21 April 2016.

DEPUTY PRESIDENT

ATTACHMENT A

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CaseChat Overview and Summary

Lion-Dairy & Drinks Pty Ltd recently faced a dispute before the Fair Work Commission regarding the approval of the Lion Dairy & Drinks (Campbellfield Operations) and National Union of Workers Enterprise Agreement 2014. The union sought the commission's approval of the enterprise agreement, which had been negotiated between the union and the employer, but the employer contested certain provisions of the agreement. The crux of the dispute lay in the interpretation and fairness of specific clauses within the proposed agreement.

The legal issues before the commission included whether the provisions of the agreement were genuinely bargained, whether they met the requirements for "better-off, overall" and "no disadvantage" tests, and whether they complied with the good faith bargaining obligations as stipulated by the Fair Work Act 2009. The commission had to consider the context of the negotiations, the terms of the agreement, and the implications for both the employer and employees.

In its decision, the commission found that the enterprise agreement was genuinely bargained and met the "better-off, overall" and "no disadvantage" tests. The commission highlighted that the provisions in question were necessary to address specific workplace issues and that the employees would be better off overall as a result. Additionally, the commission determined that the agreement did not contravene good faith bargaining obligations. Consequently, the commission approved the enterprise agreement, stating that the benefits to the employees outweighed any potential disadvantages to the employer.

The final orders of the commission mandated the approval of the Lion Dairy & Drinks (Campbellfield Operations) and National Union of Workers Enterprise Agreement 2014, effective from the date of the decision. This ruling not only settled the immediate dispute but also set a precedent for similar agreements in the industry.

Lion-Dairy & Drinks Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established