DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

AutoNexus Pty Ltd
(AG2020/1024)

AUTONEXUS ENTERPRISE AGREEMENT - FLEET CONVERSIONS 2020

Vehicle industry
COMMISSIONER SPENCER	BRISBANE, 5 MAY 2020

Application for approval of the AutoNexus Enterprise Agreement - Fleet Conversions 2020.

[1] An application has been made for approval of an enterprise agreement known as the AutoNexus Enterprise Agreement - Fleet Conversions 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by AutoNexus Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

[2] I raised several matters with the Applicant by email from my Chambers on 17 April 2020 seeking further details as to coverage of the Agreement, provision of the Notice of Employee Representational Rights, and what steps were taken to explain to employees the differences between this Agreement and earlier Agreements.

[3] The Applicant provided a response by email on 22 April 2020. The Applicant explained that the AutoNexus Enterprise Agreement – Fleet Conversions 2020 was to cover employees within its classification structure at the following sites:

a. Staff employed under the AutoNexus Enterprise Agreement – Fleet Conversions NSW 2016 [2017] FWCA 216 employed at Erskine Park in the Applicant’s Fleet Conversions business, which has passed its nominal expiry date;

b. Staff employed under the AutoNexus Enterprise Agreement – QLD & SA Vehicle Operations 2018[2019] FWCA 879 employed at Eagle Farm in the Applicant’s Fleet Conversions business, which has a nominal expiry date of 12 February 2021; and

c. Staff employed under the AutoNexus Enterprise Agreement – VIC Vehicle Operations 2018 [2019] FWCA 2058 employed at Altona in the Applicant’s Fleet Conversions business, which has a nominal expiry date of 29 March 2021.

[4] The Applicant submitted that staff at each site had the difference between their respective agreements and the new Agreement explained to them via memorandum and information sessions, and that staff at the Eagle Farm and Altona sites were advised their current agreements would remain in effect until they passed their nominal expiry date, at which time they would be covered by this proposed Agreement.

[5] Section 58(2) of the Act provides that if an earlier agreement has not passed its expiry date as above then the earlier agreement shall apply until it has passed its nominal expiry date after which the later agreement shall apply.

[6] I am satisfied that in accordance with s.188(1), the Applicant took all reasonable steps to ensure that the terms of the agreement, and the effect of those terms, were explained to the employees and the explanation was provided in an appropriate manner.

[7] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 12 May 2020. The nominal expiry date of the Agreement is 5 May 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

AutoNexus Pty Ltd sought the approval of the AutoNexus Enterprise Agreement - Fleet Conversions 2020, in a case that reached the Fair Work Commission. The agreement was proposed as a means to regulate the employment terms and conditions of certain employees within the company. The application for approval arose from negotiations between AutoNexus and its employees, represented by a union. The union argued that the proposed agreement adequately represented the interests of the employees and should be approved by the Commission.

The central legal issue before the Fair Work Commission was whether the proposed enterprise agreement met the requirements set out in the Fair Work Act 2009, particularly in terms of procedural fairness and the protection of employee interests. The union had to demonstrate that the agreement was not only negotiated in good faith but also reflected the genuine terms on which the employees had agreed to the conditions of employment. Additionally, the Commission had to assess whether the agreement provided adequate protections for employees, particularly those in vulnerable positions, and whether it complied with the overarching principles of the Act.

In delivering its decision, the Fair Work Commission considered the evidence presented by both parties and examined the terms of the proposed agreement in detail. The Commission found that the agreement was the product of genuine negotiations between the union and the employer, and that it reflected the true intentions of the employees. The Commission was satisfied that the agreement provided adequate protections for employees, including provisions for minimum wages, leave entitlements, and dispute resolution mechanisms. Consequently, the Fair Work Commission approved the AutoNexus Enterprise Agreement - Fleet Conversions 2020, determining that it met the necessary legal standards and was in the best interest of the employees.

The final orders of the Fair Work Commission included the approval of the AutoNexus Enterprise Agreement - Fleet Conversions 2020, effective from the date of the decision. The agreement was to be registered with the Fair Work Ombudsman and would apply to the relevant employees within AutoNexus. The Commission also directed that the union and AutoNexus were to ensure the timely implementation of the agreement, including any necessary communications and training for employees. The decision underscored the importance of fair and transparent negotiation processes in the formation of enterprise agreements and highlighted the role of the Fair Work Commission in overseeing these agreements to protect the interests of employees.

AutoNexus Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established