AGCO Australia Limited T/A AGCO Australia Limited

[2023] FWCA 2388

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

AGCO Australia Limited T/A AGCO Australia Limited

(AG2023/2436)

AGCO AUSTRALIA LIMITED MAINTENANCE ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 31 JULY 2023

Application for approval of the AGCO Australia Limited Maintenance Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the AGCO Australia Limited Maintenance Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by AGCO Australia Limited T/A AGCO Australia Limited (the Employer). The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

On the basis of the material contained in the application, and the 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 “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 seeks to be covered by the Agreement. 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 31 July 2023 and, in accordance with s 54, will operate from 7 August 2023. The nominal expiry date of the Agreement is 31 July 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

AGCO Australia Limited, trading as AGCO Australia Limited, applied for approval of the AGCO Australia Limited Maintenance Enterprise Agreement 2023, before the Fair Work Commission. The dispute involved the terms and conditions of employment for maintenance workers within the company, focusing on the agreement's compliance with relevant industrial laws and fairness to both the employer and employees. The primary issue before the Commission was whether the proposed agreement met the statutory requirements for an enterprise agreement, including the necessity of a genuine bargain, and whether it provided for fair and reasonable terms and conditions of employment. The Commission also had to determine if the agreement was consistent with the Fair Work Act 2009 and other relevant legislation.

The Commission considered the submissions from both AGCO Australia Limited and the union representatives, evaluating the negotiation process and the content of the agreement. It assessed whether the agreement was made in good faith, free from coercion and undue influence, and if it provided for the resolution of disputes. The Commission examined the provisions of the agreement, including pay rates, hours of work, leave entitlements, and other employment conditions, to ensure they were fair and reasonable. It also looked into the impact of the agreement on the workforce and the broader industrial context.

After thorough consideration of the evidence and submissions, the Fair Work Commission approved the AGCO Australia Limited Maintenance Enterprise Agreement 2023. The Commission found that the agreement was made in good faith, complied with the requirements of the Fair Work Act, and provided for fair and reasonable terms and conditions of employment. The decision was based on the evidence that the negotiation process was transparent and that the terms of the agreement were fair and reasonable. The Commission also noted that the agreement would provide stability and predictability for both the employer and the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established