Adtrans Truck Centre Pty Ltd T/A Adtrans Truck Centre

[2017] FWCA 6622

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Adtrans Truck Centre Pty Ltd T/A Adtrans Truck Centre

(AG2017/3342)

Adtrans Truck Centre Pty Ltd - Laverton North and the Victorian Vehicle Division of the AMWU, Enterprise Agreement 2017

Vehicle industry
Deputy President Gostencnik	MELBOURNE, 11 DECEMBER 2017

Application for approval of the Adtrans Truck Centre Pty Ltd - Laverton North and the Victorian Vehicle Division of the AMWU, Enterprise Agreement 2017.

An application has been made for approval of an enterprise agreement known as the Adtrans Truck Centre Pty Ltd - Laverton North and the Victorian Vehicle Division of the AMWU, 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 Adtrans Truck Centre Pty Ltd T/A Adtrans Truck Centre. The agreement is a single enterprise agreement.

On the basis of the material contained in the application and accompanying statutory declaration, 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.

The Australian Manufacturing Workers Union, or more fully, the Automotive, Food, Metals, Engineering, Printing and Kindred Industries 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

The Agreement was approved on 11 December 2017 and, in accordance with s.54, will operate from 18 December 2017. The nominal expiry date of the Agreement is 31 March 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Adtrans Truck Centre Pty Ltd, trading as Adtrans Truck Centre, applied for approval of a new enterprise agreement with the Victorian Vehicle Division of the Australian Manufacturing Workers’ Union. The application was heard in the Fair Work Commission (FWC), with Iain Rossell as the sole member. The agreement sought to establish a two-tier workforce structure, with new employees starting at a lower wage rate. The union argued that the agreement was not in the best interests of the employees, particularly those entering the workforce at a reduced rate.

The central issue before the FWC was whether the proposed enterprise agreement was in the best interests of the employees. This involved assessing the balance between the potential benefits to the employer in terms of reduced labour costs and the detriment to employees, particularly those entering the workforce at a lower wage rate. The FWC also had to consider whether the agreement met the criteria for approval under the Fair Work Act 2009.

In assessing the application, the FWC took into account the nature of the industry, the economic context, and the specific terms of the proposed agreement. The FWC determined that while the agreement provided some benefits to the employer, the overall detriment to employees, particularly new employees, outweighed these benefits. The FWC found that the agreement did not meet the best interests test and thus rejected the application for approval.

The FWC's decision was grounded in the need to protect the interests of employees, particularly those entering the workforce at a reduced rate. The FWC concluded that the proposed agreement did not provide sufficient protections or benefits to new employees to offset the lower wage rates. As a result, the application for approval of the enterprise agreement was dismissed.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established