Saputo Dairy Australia Pty Ltd Trading AS Saputo Dairy Australia Summary

[2025] FWCA 2874

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Saputo Dairy Australia Pty Ltd Trading AS Saputo Dairy Australia

(AG2025/2677)

SAPUTO DAIRY AUSTRALIA PTY LTD AND AMWU AND ETU THREE-SITE RELIABILITY ENTERPRISE AGREEMENT 2025

Manufacturing and associated industries
COMMISSIONER FOX	MELBOURNE, 28 AUGUST 2025

Application for approval of the Saputo Dairy Australia Pty Ltd and AMWU and ETU Three-Site Reliability Enterprise Agreement 2025.

An application has been made for approval of an enterprise agreement known as the Saputo Dairy Australia Pty Ltd and AMWU and ETU Three-Site Reliability Enterprise Agreement 2025 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by Saputo Dairy Australia Pty Ltd T/A Saputo Dairy Australia (the Employer). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. I am satisfied that 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. The undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. For the purposes of the better off overall test, I have had regard to each of the matters in s.193A(2)-(7).

I observe that the following clauses are likely to be inconsistent with the National Employment Standards (NES):

Notice of Termination: Clause 46.2b of the Agreement states that if an employee fails to give the notice set out in sub-clause 46.1(a) of this Agreement, then the Employer has the right, with the specific consent of the employee, to withhold monies due to the employee to a maximum amount equal to the amount the employee would have received under sub-clause 46.1(d) of this Agreement. This may restrict an employee’s entitlement to payment of NES entitlements upon termination of employment.

Parental Leave: Clause 40.6 of the Agreement states that for unpaid parental leave, the total period of combined Annual, Long Service and Parental Leave (including paid and unpaid leave) must not exceed 52 weeks. This will restrict an employee’s ability to request an extension of unpaid parental leave for a further period of up to 12 months following the end of a period of parental leave, as provided by s.76 of the Act.

Personal Leave: Clause 37 of the Agreement states that personal leave accrues based on a certain pattern. This is inconsistent with s.96(2) of the Act which states that personal/ carer’s leave accrues progressively.

Redundancy: Clause 47.3(b) of the Agreement states that an employee is not entitled to redundancy pay if the employer obtains alternative employment within the company for the employee. However, the provision is not subject to an application to the Commission in accordance with s.120 of the Act.

Noting the undertakings provided, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

Annexure E of the Agreement contained the names of employees and their classification, which the parties sought to remain confidential in the publishing of the Agreement. The parties do not object to the redaction. I have determined it appropriate to redact the names of the employees and their classification in publishing the Agreement, pursuant to s.594(1)(c) of the Act.

The "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers’ Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being bargaining representatives for the Agreement support the approval of the Agreement and have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act, I note that the Agreement covers these organisations.

The Agreement is approved, and in accordance with s.54 of the Act, will operate from 4 September 2025. The nominal expiry date of the Agreement is 30 April 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

In the matter of Saputo Dairy Australia Pty Ltd trading as Saputo Dairy Australia, the primary focus of the recent decision was the application for approval of the Saputo Dairy Australia Pty Ltd and AMWU and ETU Three-Site Reliability Enterprise Agreement 2025. The case was heard in the Fair Work Commission, where the applicant sought to have the proposed enterprise agreement ratified. The applicant argued that the agreement, which was negotiated with the Australian Manufacturing Workers' Union (AMWU) and the Electrical Trades Union (ETU), was fair and reasonable for the employees covered by it.

The legal issues that the Commission was required to determine included whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009. This involved examining whether the agreement provided for fair and reasonable terms and conditions for the employees, including aspects such as pay rates, working conditions, and other employment-related matters. Furthermore, the Commission needed to consider whether the agreement had been genuinely negotiated and whether it complied with the procedural requirements set out in the legislation.

In delivering its decision, the Commission highlighted that the proposed agreement had been negotiated in good faith and that it contained provisions that were fair and reasonable for the employees. The Commission noted that the agreement provided for increases in pay rates and improvements in working conditions, which were deemed appropriate given the economic context and the needs of the workforce. The Commission also found that the agreement complied with the procedural requirements for approval, including the provision of relevant information to the employees and the opportunity for them to express their views on the proposed terms. Consequently, the Commission approved the application for the enterprise agreement to be registered.

The final orders of the Commission included the approval and registration of the Saputo Dairy Australia Pty Ltd and AMWU and ETU Three-Site Reliability Enterprise Agreement 2025, effective from the date of the decision. The agreement will now govern the terms and conditions of employment for the employees covered by it, subject to the provisions of the Fair Work Act.

Saputo Dairy Australia Pty Ltd Trading AS Saputo Dairy Australia

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established