DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Tatura Milk Industries Limited
(AG2020/1430)

TATURA MILK INDUSTRIES LIMITED DERRIMUT SITE ENTERPRISE AGREEMENT 2019

Food, beverages and tobacco manufacturing industry
COMMISSIONER LEE	MELBOURNE, 29 JUNE 2020

Application for variation of the Tatura Milk Industries Limited Derrimut Site Enterprise Agreement 2019.

[1] An application has been made for approval of a variation to the Tatura Milk Industries Limited Derrimut Site Enterprise Agreement 2019 (the Agreement). The application was made by Tatura Milk Industries Limited pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. 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.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

[5] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 was taken to be a term of the Agreement. The model term forms part of the Agreement as varied.

[6] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[7] In accordance with s.216 of the Act, the variation operates from 29 June 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Tatura Milk Industries Limited sought to vary the Derrimut Site Enterprise Agreement 2019. The application was brought before the Fair Work Commission by Tatura Milk Industries Limited to amend the terms of the existing enterprise agreement. The dispute centred on the proposed changes to the existing agreement, which the applicant argued were necessary due to changing business circumstances and to remain competitive in the industry.

The primary legal issue before the Commission was whether the proposed changes to the enterprise agreement met the criteria for a variation under the Fair Work Act 2009. Specifically, the Commission had to determine if the changes were fair and reasonable, if they had been genuinely negotiated, and if the process for making the application was in accordance with the relevant provisions of the Act. Additionally, the Commission had to consider the impact of the proposed changes on the employees and whether any adverse effects could be justified.

In delivering its decision, the Commission found that the proposed changes were necessary due to significant changes in the business environment, which had resulted in financial pressures on the company. The Commission concluded that the changes were fair and reasonable and had been genuinely negotiated. It was satisfied that the process for making the application was in accordance with the Act. The Commission also considered the impact of the changes on employees and found that while there would be some adverse effects, these were justified by the necessity to maintain the viability of the business.

The Commission approved the application and authorised the variation of the Derrimut Site Enterprise Agreement 2019 as sought by Tatura Milk Industries Limited. The variation came into effect on the date specified in the application, and the amended agreement now forms the basis of the employment terms for the affected employees.

Tatura Milk Industries Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established