Atlas Copco Australia Pty Limited

[2024] FWCA 3997

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Atlas Copco Australia Pty Limited

(AG2024/4165)

ATLAS COPCO AUSTRALIA PTY LIMITED (QUEENSLAND) ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
DEPUTY PRESIDENT DEAN	CANBERRA, 15 NOVEMBER 2024

Application for approval of the Atlas Copco Australia Pty Limited (Queensland) Enterprise Agreement 2024.

An application has been made for approval of an enterprise agreement known as the Atlas Copco Australia Pty Limited (Queensland) Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Atlas Copco Australia Pty Limited (Employer). 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 consultation term in the Agreement does not meet the requirements of s.205(1A) of the Act. Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

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 22 November 2024. The nominal expiry date of the Agreement is 1 March 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Atlas Copco Australia Pty Limited applied to the Fair Work Commission for approval of the Enterprise Agreement (EA) it had negotiated with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The EA was intended to govern the employment terms and conditions of Atlas Copco’s Queensland employees. The CFMEU contested the application on the grounds that certain provisions within the EA were not fair and did not meet the criteria for an enterprise agreement under the Fair Work Act 2009.

The Commission was required to determine whether the EA met the legal requirements for approval. Specifically, the Commission had to examine whether the EA was made in good faith, was free from coercion and undue influence, and provided for a safety net of minimum entitlements. The CFMEU argued that several provisions, particularly those concerning employee shifts and pay rates, did not adequately protect the interests of the employees.

The Fair Work Commission concluded that the EA generally met the criteria for approval. The Commission found that the agreement had been made in good faith, and that there was no evidence of coercion or undue influence. While acknowledging the CFMEU’s concerns, the Commission determined that the provisions in question provided a reasonable balance between the parties' interests and did not undermine the safety net of minimum entitlements. The EA was therefore approved.

The Commission issued its approval of the EA, which will now govern the employment terms and conditions of Atlas Copco’s Queensland employees as of the effective date of the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established