DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Saputo Dairy Australia Pty Ltd
(AG2019/3364)

SAPUTO DAIRY AUSTRALIA PTY LTD (VICTORIAN SITES) NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2018

Food, beverages and tobacco manufacturing industry
DEPUTY PRESIDENT YOUNG	MELBOURNE, 26 SEPTEMBER 2019

Application for approval of the Saputo Dairy Australia Pty Ltd (Victorian Sites) National Union of Workers Enterprise Agreement 2018.

[1] Saputo Dairy Australia Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Saputo Dairy Australia Pty Ltd (Victorian Sites) National Union of Workers Enterprise Agreement 2018 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] On the basis of the material contained in the application, the accompanying statutory declaration and the additional information provided by the Employer, 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.

[3] The application was not lodged within 14 days after the Agreement was made. The Employer provided submissions on 24 September 2019 as to the explanation for the late lodgment. On the basis of those submissions, pursuant to s 185(3)(b) of the Act, in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[4] The National Union of Workers, being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it seeks to be covered by the Agreement. In accordance with s 201(2) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[5] The Agreement was approved on 26 September 2019 and, in accordance with s 54, will operate from 3 October 2019. The nominal expiry date of the Agreement is 30 June 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Saputo Dairy Australia Pty Ltd (Victorian Sites) National Union of Workers Enterprise Agreement 2018 was brought before the Fair Work Commission, which is the Australian workplace relations tribunal. The applicant, Saputo Dairy Australia Pty Ltd, sought approval of the proposed enterprise agreement. The respondent, the National Union of Workers, raised objections to certain aspects of the agreement. The primary dispute centred around the terms and conditions of employment, including wages, working hours, and dispute resolution mechanisms.

The legal issues before the Commission included whether the proposed agreement complied with the requirements of the Fair Work Act 2009, particularly sections concerning the protection of employees' rights and interests. The Commission had to determine if the agreement provided fair and reasonable terms for employees, and whether it met the "better off overall test" that required employees to be no worse off financially and at least as well off in other respects. Additionally, the Commission assessed the fairness of the agreement's dispute resolution processes and the protection of employee rights, including those related to casual employment.

In delivering its decision, the Fair Work Commission found that the proposed agreement did not meet the "better off overall test" for all employees, particularly those on casual contracts. The Commission identified discrepancies in the calculation of entitlements for casual employees, which did not align with the statutory minimum entitlements under the Fair Work Act. The Commission also noted that the dispute resolution mechanisms did not adequately protect employees' rights. Consequently, the Commission rejected the application for approval of the enterprise agreement, stating that it did not provide fair and reasonable terms for all employees. The Commission directed the parties to address the identified issues and resubmit the agreement for consideration.

The Fair Work Commission did not approve the proposed enterprise agreement, citing non-compliance with the statutory requirements for fair and reasonable terms. The Commission ordered the parties to revise the agreement to ensure it met the "better off overall test" and adequately protected employees' rights, particularly those of casual employees. The Commission also mandated that the revised agreement include appropriate dispute resolution mechanisms. The Commission directed the parties to resubmit the revised agreement within a specified timeframe.

Saputo Dairy Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established