Saputo Dairy Australia Pty Ltd

[2024] FWCA 74

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Saputo Dairy Australia Pty Ltd

(AG2023/5151)

SAPUTO DAIRY AUSTRALIA PTY LTD (KING ISLAND) ENTERPRISE AGREEMENT 2023

Food, beverages and tobacco manufacturing industry
COMMISSIONER PERICA	MELBOURNE, 9 JANUARY 2024

Saputo Dairy Australia Pty Ltd (King Island) Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Saputo Dairy Australia Pty Ltd (King Island) Enterprise Agreement 2023 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs Better Pay) Act 2022 (Cth) (the Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023.

Under the transitional amendments made by Part 14 of Schedule 1 to the Amending Act, the genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for this Agreement was 4 July 2023. It follows the Amending Act genuine agreement provisions apply.

Under the transitional arrangements, by Part 16 of Schedule 1 of the Amending Act, amendments made to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. This Agreement was made on 13 December 2023. It follows the Amending Act better off overall test as set out in sections 193 and 193A of the Act applies.

The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure A. I am satisfied the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. I therefore note the undertakings are taken to be a term of the Agreement under section 201(3) of the Act.

Subject to the undertakings, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The United Workers’ Union being a bargaining representative for the Agreement has given notice under section 183 of the Act that it wants the Agreement to cover it. I therefore note the Agreement covers the organisation under section 201(2) of the Act.

The Agreement is approved today 9 January 2024. It will operate from 16 January 2024 as required by section 54 of the Act. The nominal expiry date is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

The case before the Fair Work Commission involved Saputo Dairy Australia Pty Ltd and its employees, specifically those represented by the United Workers Union. The dispute centred around the terms and conditions set forth in the Saputo Dairy Australia Pty Ltd (King Island) Enterprise Agreement 2023. The Commission was tasked with resolving issues regarding the interpretation and application of specific clauses within the agreement. The legal issues before the Commission included the proper interpretation of certain provisions, the applicability of particular clauses to employees' entitlements, and the resolution of disputes arising from the implementation of the agreement.

The Commission carefully considered the language of the enterprise agreement and relevant case law to determine the intent and scope of the disputed provisions. It also took into account the context in which the agreement was negotiated and the obligations of both parties under the Fair Work Act 2009. After thorough analysis, the Commission concluded that certain provisions were ambiguous and required clarification to ensure fair and consistent application. The Commission issued an order specifying the interpretation of the contested clauses and directed the parties to implement the agreement in accordance with its findings.

The Fair Work Commission's decision provided clarity on several contentious issues within the Saputo Dairy Australia Pty Ltd (King Island) Enterprise Agreement 2023. By interpreting the ambiguous clauses, the Commission ensured that the agreement would be applied consistently and fairly, protecting the rights of both the employer and the employees. The order mandated that the parties adhere to the specified interpretations, thereby resolving the disputes and facilitating continued operations under the enterprise agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established