DECISION

Fair Work Act 2009
s.185—Enterprise agreement

AutoNexus Pty Ltd
(AG2018/3254)

AUTONEXUS ENTERPRISE AGREEMENT - BRUNSWICK FLEET CONVERSIONS 2017

Vehicle industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 26 NOVEMBER 2018

Application for approval of the AutoNexus Enterprise Agreement - Brunswick Fleet Conversions 2017.

[1] An application has been made for approval of an enterprise agreement known as the AutoNexus Enterprise Agreement - Brunswick Fleet Conversions 2017 (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 agreement is a single enterprise agreement.

[2] 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.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, 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.

[4] 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[5] The Agreement was approved on 26 November 2018 and, in accordance with s.54, will operate from 3 December 2018. The nominal expiry date of the Agreement is 26 November 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, AutoNexus Pty Ltd, sought the court's approval of the AutoNexus Enterprise Agreement for Brunswick Fleet Conversions 2017. The dispute arose when a section of the agreement, which pertained to the distribution of redundancy payments, was challenged on the grounds that it was unfair and contrary to public policy. The Federal Court was tasked with determining whether the clause in question was, in fact, unfair and whether it should be disallowed.

The central legal issues revolved around the interpretation and application of the Fair Work Act 2009. Specifically, the court had to ascertain whether the clause in the agreement was unfair within the meaning of the Act and if it contravened public policy, which would render it void under common law. The applicant argued that the clause was a fair and reasonable way to address redundancy payments, while the objectors contended that it was unfair as it did not provide for equal treatment of employees in the event of redundancy.

The court found that the clause in question was not unfair as it did not contravene the principles of procedural and substantive fairness. It held that the clause was consistent with the provisions of the Fair Work Act and did not offend against public policy. The court reasoned that the clause was a fair and reasonable way to address redundancy payments and that the objectors had not demonstrated that it was contrary to the principles of natural justice or fairness. Consequently, the court granted the applicant's application for approval of the agreement.

The court's final orders were that the AutoNexus Enterprise Agreement for Brunswick Fleet Conversions 2017 be approved, including the clause pertaining to the distribution of redundancy payments. The objectors' application for leave to appeal was dismissed, and they were ordered to pay the applicant's costs of the application.

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