| [2020] FWCFB 4598 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.157 - FWC may vary etc. modern awards if necessary to achieve modern awards objective
Application to vary the Vehicle Repair, Services and Retail Award 2020
(AM2020/91)
Vehicle industry | |
JUSTICE ROSS, PRESIDENT | MELBOURNE, 31 AUGUST 2020 |
Application to vary modern award to achieve the modern awards objective – Schedule I – Award flexibility during the COVID-19 Pandemic.
[1] On 11 May 2020 we issued a Decision 1 granting an application filed by the Victorian Automobile Chamber of Commerce (VACC), the Motor Trade Association of South Australia Inc, the Motor Traders Association of New South Wales, the Motor Trades Association of Queensland Industrial Organisation of Employers and Ai Group to insert a new schedule, Schedule J – Award flexibility during the COVID-19 Pandemic, into the Vehicle Repair, Services and Retail Award 2020 (the Vehicle Award) (note Schedule J has been renumbered and is now Schedule I). The application was supported by the Australian Chamber of Commerce and Industry (ACCI), the Australian Automotive Dealer Association (AADA) and the Motor Trade Association of Western Australia and was also consented to by the Australian Manufacturing Workers Union (AMWU), the Shop Distributive and Allied Employees Association (SDA) and the Australian Council of Trade Unions (ACTU). Schedule I came into operation on 11 May 2020 and was to cease operation on 30 June 2020.
[2] Since the 11 May 2020 decision, we have granted two applications to extend the operation of Schedule I. 2 The Schedule is currently due to cease operation on 31 August 2020.
[3] On 27 August 2020 a further application to vary and extend the operation of Schedule I was filed by the VACC, Motor Trade Association of South Australia Incorporated, Motor Traders Association of New South Wales, Motor Trades Association of Queensland Industrial Organisation of Employers and Ai Group (the Applicants). The Application is supported by the ACCI and the AADA.
[4] The Application sought to extend the operation of Schedule I–Award flexibility during the COVID-19 Pandemic of the Vehicle Award for a limited period, until 30 September 2020. The Applicants submitted that:
‘This period has been chosen with specific regard to this Industry, as the Industry sees oscillating demand for business from month to month. By way of example, June is historically a relatively busy month (arising from the end of financial year sales) whereas July is historically a quiet month. In August the sales part of the Industry starts to slowly build. Given the prevailing economic circumstances and the restrictions in place in Victoria, it is not clear yet whether that pattern has been replicated in August. It is likely that the Industry has continued to suffer declines in new car sales and remains confronted by other challenges.
The limitation of the extension to 30 September 2020 ensures that the trends of demand specific to this Industry can be monitored and the need for the Schedule reassessed.’
[5] In a decision 3 issued on 28 August 2020 we expressed the provisional view, taking into account the relevant s.134 considerations, that the variation proposed was necessary to achieve the modern awards objective. Any party opposing the provisional view was directed to file submissions by 12noon on Monday 31 August 2020.
[6] In our decision of 28 August 2020, we made it clear that if no submissions were filed opposing our provisional view, then we would vary the Vehicle Award accordingly. No such submissions were filed. We confirm our provisional view.
[7] We are satisfied that the variation proposed is necessary to achieve the modern awards objective and in so deciding we have taken into account the considerations in s.134(1)(a) to (h), insofar as they are relevant. Once varied, the Vehicle Award will only include terms to the extent necessary to achieve the modern awards objective.
[8] Accordingly, we will grant the application and vary the Vehicle Award. The Award variation determination will be issued with this decision. The hearing proposed for 2pm on Monday 31 August 2020 is vacated.
[9] A copy of the variation determination is set out at Attachment A.
PRESIDENT
Printed by authority of the Commonwealth Government Printer
<PR722281>
ATTACHMENT A
Attachment A
MA000089 PR722261
DETERMINATION
Fair Work Act 2009
s.157 – FWC may vary etc. modern awards if necessary to achieve modern awards objective
Victorian Automobile Chamber of Commerce and Ors
(AM2020/91)
VEHICLE REPAIR, SERVICES AND RETAIL AWARD 2020
MA000089
Vehicle industry | |
JUSTICE ROSS, PRESIDENT | MELBOURNE, 31 AUGUST 2020 |
Application to vary the Vehicle Repair, Services and Retail Award 2020 – Schedule I – Award flexibility during the COVID-19 Pandemic.
A Further to decision [[2020] FWCFB 4598] issued by the Full Bench on 31 August 2020, the above award is varied as follows:
1. By deleting the words “31 August 2020” in clause I.1.2 and inserting “30 September 2020”.
2. By deleting the words “31 August 2020” in clause I.1.3 and inserting “30 September 2020”.
3. By deleting the words “31 August 2020” in clause I.3.5 and inserting “30 September 2020”.
B This determination comes into operation on 31 August 2020. In accordance with s.165(3) of the Fair Work Act 2009 this determination does not take effect in relation to a particular employee until the start of the employee’s first full pay period that starts on or after 31 August 2020.
PRESIDENT
Printed by authority of the Commonwealth Government Print
2 [2020] FWCFB 3146 and [2020] FWCFB 4018
- AGLC
- Application to vary the Vehicle Repair, Services and Retail Award 2020 [2020] FWCFB 4598
- Case
- [2020] FWCFB 4598
- Decision Date
CaseChat Overview and Summary
The central legal issue before the Commission was whether the application to vary the award met the criteria set out in Schedule 1 of the Fair Work Act 2009. Specifically, the Commission needed to determine if the applicant had demonstrated that the proposed changes were necessary to achieve the modern award's objectives, given the unique circumstances created by the COVID-19 pandemic. The Commission also needed to consider whether the proposed changes were consistent with the overarching purpose of the award to provide fairness and flexibility in the workplace.
The Fair Work Commission found that the applicant had adequately demonstrated the need for the proposed variations to the award. The Commission noted the significant economic impact of the pandemic on the vehicle repair, services, and retail industry, and acknowledged the changes in the labour market that necessitated adjustments to the award's terms. The Commission considered the evidence presented by the applicant and concluded that the proposed variations would achieve the modern award's objectives while maintaining fairness in the workplace. The application was approved, and the award was varied accordingly.
The Fair Work Commission's decision resulted in the amendment of the Vehicle Repair, Services and Retail Award 2020 to reflect the specific challenges faced by the industry during the COVID-19 pandemic. The variations to the award aimed to provide the necessary flexibility to businesses in the sector, ensuring their continued operation and the protection of employees' rights.
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Background
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