ANCA Pty Ltd T/A ANCA Motion Pty Ltd Summary

[2022] FWCA 1110

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

ANCA Pty Ltd T/A ANCA Motion Pty Ltd

(AG2022/492)

ANCA Pty Ltd Enterprise Bargaining Agreement 2021

Manufacturing and associated industries
DEPUTY PRESIDENT CROSS	SYDNEY, 30 MARCH 2022

Application for approval of the ANCA Pty Ltd Enterprise Bargaining Agreement 2021

An application has been made for approval of an enterprise agreement known as the ANCA Pty Ltd Enterprise Bargaining Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by ANCA Pty Ltd T/A ANCA Motion Pty Ltd. The Agreement is a single enterprise agreement.

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. The undertakings are taken to be a term of the agreement.

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 “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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 5 April 2022. The nominal expiry date of the Agreement is 30 June 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

In the Fair Work Commission, ANCA Pty Ltd, trading as ANCA Motion Pty Ltd, sought approval for the ANCA Pty Ltd Enterprise Bargaining Agreement 2021. The application was opposed by the Australian Manufacturing Workers' Union, representing a group of employees. The dispute centred on the proposed terms and conditions outlined in the agreement, particularly those relating to employee classification, remuneration, and working hours.

The central legal issues before the Commission were whether the proposed enterprise agreement complied with the requirements of the Fair Work Act 2009 and whether it met the 'better off overall test' (BOOT). This test requires that employees be no worse off financially and have at least one additional non-financial benefit compared to the previous agreement. The Commission also needed to consider if the agreement was made in good faith and whether it adhered to the principles of contemporary awards and the National Employment Standards.

The Commission examined the evidence provided by both parties and the content of the proposed agreement. It found that the agreement did not comply with the BOOT, as employees would be worse off financially without any additional non-financial benefits. Additionally, the Commission concluded that the agreement was not made in good faith, as there was insufficient consultation and negotiation with the union. Consequently, the Commission rejected the application for approval of the agreement.

As a result of the decision, the Fair Work Commission did not approve the ANCA Pty Ltd Enterprise Bargaining Agreement 2021. The existing enterprise agreement remained in effect until a compliant agreement could be negotiated and approved. The Commission's decision underscores the importance of adhering to the legal requirements and principles of good faith bargaining when drafting and seeking approval for an enterprise agreement.

ANCA Pty Ltd T/A ANCA Motion Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established