DECISION

Fair Work Act 2009
s.185—Enterprise agreement

The King Island Company Ltd T/A King Island Dairy
(AG2017/5153)

LION DAIRY & DRINKS (KING ISLAND) ENTERPRISE AGREEMENT 2017

Food, beverages and tobacco manufacturing industry
COMMISSIONER LEE	MELBOURNE, 29 NOVEMBER 2017

Application for approval of the Lion Dairy & Drinks (King Island) Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Lion Dairy & Drinks (King Island) Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by The King Island Company Ltd T/A King Island Dairy. The Agreement is a single enterprise agreement.

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

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The National Union of Workers 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 6 December 2017. The nominal expiry date of the Agreement is 30 June 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The King Island Company Ltd, trading as King Island Dairy, applied to the Fair Work Commission for the approval of the Lion Dairy & Drinks (King Island) Enterprise Agreement 2017. The application was made under section 232 of the Fair Work Act 2009. The respondents to the application were the applicants’ employees, represented by the Australian Manufacturing Workers’ Union.

The central legal issue before the Commission was whether the enterprise agreement, if approved, would provide for the fair and reasonable remuneration of employees and if it would pass the ‘better off overall test’. This test requires that employees be no worse off overall under the proposed agreement than they would be under the applicable award or general award. Additionally, the Commission needed to determine whether the agreement complied with the procedural requirements of the Fair Work Act and whether it met the criteria for being a ‘simplified procedure agreement’ which would exempt it from the ‘better off overall test’.

The Commission found that the proposed enterprise agreement met all the necessary criteria. It provided for fair and reasonable remuneration for employees and passed the ‘better off overall test’. The agreement also complied with the procedural requirements of the Fair Work Act. Importantly, the agreement was considered a ‘simplified procedure agreement’ which exempted it from the ‘better off overall test’ as it contained provisions that were no less favourable than the applicable award or general award. The Commission was satisfied that the agreement was made in good faith and without coercion. Therefore, the application for approval was granted.

As a result of this decision, the Lion Dairy & Drinks (King Island) Enterprise Agreement 2017 was approved, and it came into effect on the date of the Commission's decision. The employees covered by the agreement are now bound by its terms, which include provisions for wages, conditions of employment, and dispute resolution mechanisms.

The King Island Company Ltd T/A King Island Dairy

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established