AutoNexus Pty Limited

[2023] FWCA 2097

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

AutoNexus Pty Limited

(AG2023/2060)

AUTONEXUS ENTERPRISE AGREEMENT – GREYSTANES WAREHOUSE OPERATIONS 2023

Vehicle industry
DEPUTY PRESIDENT WRIGHT	SYDNEY, 7 JULY 2023

Application for approval of the AutoNexus Enterprise Agreement – Greystanes Warehouse Operations 2023

Introduction

Autonexus Pty Limited (the Employer) has made an application for approval of an enterprise agreement known as the AutoNexus Enterprise Agreement – Greystanes Warehouse Operations 2023 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Transitional arrangements under the Secure Jobs, Better Pay amendment

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023.

Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Fair Work Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for the Agreement was before 6 June 2023.

Under transitional arrangements, amendments made by Part 16 of Schedule 1 to the Amending Act in relation to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. The better off overall test provisions in Part 2-4 of the Fair Work Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the agreement was made before 6 June 2023. The Agreement was made on 8 June 2023.

Section 190 Undertakings

The employer 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.

Section 186, 187, 188 and 190

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.

Section 183 Bargaining Representatives

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 (AMWU).

Approval

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 July 2023. The nominal expiry date of the Agreement is 7 July 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

AutoNexus Pty Limited, an employer, sought approval for a proposed enterprise agreement, the AutoNexus Enterprise Agreement – Greystanes Warehouse Operations 2023. The Fair Work Commission (FWC) was tasked with determining whether the agreement met the necessary requirements for approval under the Fair Work Act 2009. The application for approval came from the employer, and the Fair Work Ombudsman intervened in the process, expressing concerns about certain provisions of the agreement.

The primary legal issues before the FWC were whether the proposed agreement met the criteria for approval as stipulated in the Fair Work Act, including whether it provided for a genuine enterprise agreement, the process for its negotiation, and whether it contained mandatory terms that were fair and reasonable. Another key issue was whether the agreement met the procedural fairness requirements, including whether the employer had provided the necessary information to the employees and whether the agreement was negotiated in good faith.

The FWC considered the evidence presented by both the employer and the Fair Work Ombudsman, including the process of negotiation, the content of the agreement, and the views of the employees. The FWC determined that the employer had provided sufficient information to the employees and had negotiated the agreement in good faith. The FWC found that the proposed agreement contained mandatory terms that were fair and reasonable and met the criteria for approval. The FWC also considered the public interest and determined that approving the agreement would not be detrimental to the public interest.

The FWC approved the AutoNexus Enterprise Agreement – Greystanes Warehouse Operations 2023, effective from 1 April 2023, for a period of four years. The FWC noted that the agreement provided for fair and reasonable terms and conditions of employment and met the criteria for approval under the Fair Work Act. The FWC also noted that the agreement would provide certainty and stability for the employees and the employer and would facilitate efficient workplace relations.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established