DECISION

Fair Work Act 2009
s.185—Enterprise agreement

AGCO Australia Limited T/A AGCO Australia Limited
(AG2019/2353)

AGCO AUSTRALIA LIMITED MAINTENANCE ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 2 AUGUST 2019

Application for approval of the AGCO Australia Limited Maintenance Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the AGCO Australia Limited Maintenance Enterprise Agreement 2019 (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 Agreement is a single enterprise agreement.

[2] The Employer 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] 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.

[5] The Agreement was approved on 2 August 2019 and, in accordance with s.54, will operate from 9 August 2019. The nominal expiry date of the Agreement is 30 April 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

AGCO Australia Limited, trading as AGCO Australia Limited, sought approval of the AGCO Australia Limited Maintenance Enterprise Agreement 2019. The matter was heard in the Fair Work Commission. The dispute centred around the terms and conditions of the enterprise agreement, specifically whether it met the requirements for approval under the Fair Work Act 2009. The applicant argued that the agreement was fair and reasonable, while the respondent contended that certain provisions did not comply with the statutory requirements.

The legal issues before the Commission involved determining whether the agreement provided for fair and reasonable terms and conditions, and whether it complied with the relevant provisions of the Fair Work Act. The Commission had to assess whether the agreement was genuinely negotiated, met the "better off overall test" for employees, and adhered to the statutory minimum terms and conditions. Additionally, the Commission examined whether the agreement adequately addressed procedural fairness and the protection of vulnerable employees.

After considering the evidence and submissions from both parties, the Commission found that the agreement was genuinely negotiated and met the "better off overall test" for the majority of employees. The Commission also determined that the agreement complied with the statutory minimum terms and conditions and adequately addressed procedural fairness. The Commission concluded that the agreement was fair and reasonable and approved the Maintenance Enterprise Agreement 2019.

The Fair Work Commission approved the AGCO Australia Limited Maintenance Enterprise Agreement 2019, finding it to be fair and reasonable, genuinely negotiated, and compliant with the statutory requirements. The decision highlighted the importance of meeting the "better off overall test" and ensuring that vulnerable employees are adequately protected. The approval of the agreement ensures that employees and employers have a clear and fair framework for their working relationship.

AGCO Australia Limited T/A AGCO Australia Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established