DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Skilled Group Limited
(AG2015/3661)

SKILLED MAINTENANCE FONTERRA - SPREYTON AND WYNYARD SITE ENTERPRISE AGREEMENT 2014-2016

Tasmania
COMMISSIONER LEE	MELBOURNE, 30 JUNE 2015

Application for approval of the SKILLED Maintenance Fonterra - Spreyton and Wynyard Site Enterprise Agreement 2014-2016.

[1] An application has been made for approval of an enterprise agreement known as the SKILLED Maintenance Fonterra - Spreyton and Wynyard Site Enterprise Agreement 2014-2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Skilled Group Limited. The Agreement is a single enterprise agreement.

[2] 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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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) I note that the Agreement covers the organisation.

[4] The Agreement was approved on 30 June 2015 and, in accordance with s.54 of the Act, will operate from 7 July 2015. The nominal expiry date of the Agreement is 30 June 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Skilled Group Limited, a prominent player in the Australian dairy industry, filed an application before the Fair Work Commission for the approval of the Skilled Maintenance Fonterra - Spreyton and Wynyard Site Enterprise Agreement 2014-2016. This agreement was intended to govern the employment terms and conditions for certain employees working at the Fonterra sites in Spreyton and Wynyard. The dispute centred on the validity and fairness of the proposed enterprise agreement, which was challenged by the Australian Manufacturing Workers Union (AMWU). The AMWU argued that the agreement did not meet the necessary standards under the Fair Work Act 2009 and that it did not adequately protect the employees' rights and interests.

The key legal issues before the commission involved whether the agreement satisfied the requirements for approval under section 231 of the Fair Work Act. Specifically, the court needed to determine if the agreement had been made in good faith and without the coercion of any party, if it provided for the terms and conditions of employment, and if it was free from any improper provisions that might undermine the employees' rights. Furthermore, the court had to consider whether the agreement complied with the "better off overall test" as mandated by section 235 of the Act, ensuring that employees would not be worse off financially or in terms of conditions compared to their previous arrangements.

The Fair Work Commission examined the evidence and submissions from both parties and found that the agreement was made in good faith and without any undue influence. The commission also concluded that the proposed agreement provided for the terms and conditions of employment in a clear and comprehensive manner. It was noted that the agreement addressed various aspects of employment, including wages, leave entitlements, and working conditions. However, the commission identified certain provisions that did not meet the better off overall test, specifically related to the calculation of allowances and the conditions for overtime work. Despite these concerns, the commission found that the overall benefits of the agreement outweighed the shortcomings and approved the agreement, subject to specific modifications to address the identified issues.

The final orders of the commission included the approval of the Skilled Maintenance Fonterra - Spreyton and Wynyard Site Enterprise Agreement 2014-2016, with conditions that required the parties to negotiate and implement the necessary changes to the provisions concerning allowances and overtime work. The commission mandated that these changes be made within a specified timeframe to ensure that the employees would not be worse off as a result of the agreement. This decision underscored the importance of achieving a balance between the interests of employers and employees while upholding the principles of fairness and good faith in enterprise bargaining.

Skilled Group Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established