DECISION

Fair Work Act 2009
s.185—Enterprise agreement

AutoNexus Pty Ltd T/A AutoNexus
(AG2019/3583)

AUTONEXUS ENTERPRISE AGREEMENT - DERRIMUT WAREHOUSE OPERATIONS 2019

Vehicle industry
COMMISSIONER YILMAZ	MELBOURNE, 21 OCTOBER 2019

Application for approval of the AutoNexus Enterprise Agreement - Derrimut Warehouse Operations 2019.

[1] An application has been made for approval of an enterprise agreement known as the AutoNexus Enterprise Agreement - Derrimut Warehouse Operations 2019 (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 T/A AutoNexus. 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. The undertakings are taken to be a term of the Agreement.

[3] The employer did not provide a copy of the Notice of Employee Representational Rights to all relevant employees within 14 days of the notification time. Pursuant to s.188(2), I am satisfied that the agreement would have been genuinely agreed to but for the minor procedural error made in relation to the requirement in s.180(3). I am satisfied that the employees covered by the agreement were not likely to have been disadvantaged by the error.

[4] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[5] The Agreement is approved and, in accordance with s.54, will operate from 28 October 2019. The nominal expiry date of the Agreement is 11 July 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, AutoNexus Pty Ltd, trading as AutoNexus, sought approval of the AutoNexus Enterprise Agreement - Derrimut Warehouse Operations 2019. The respondent, the Automotive Trades Union of Australia, opposed the application on the basis that the agreement contained terms that did not meet the "better off overall test" (BOOT) as prescribed under section 233 of the Fair Work Act 2009. The application was heard by the Commission, with the primary focus on whether the terms of the agreement provided a fair and reasonable outcome for the employees.

The legal issues before the Commission were whether the proposed agreement complied with the requirements of the BOOT, ensuring that employees were not worse off in terms of their overall pay and conditions compared to what they would have under their previous agreements. The Commission had to carefully consider the financial and non-financial benefits and detriments outlined in the agreement to determine if it achieved a fair balance for the workforce.

The Fair Work Commission found that the proposed agreement met the BOOT as it provided employees with several improvements in pay and conditions, despite some minor reductions in certain allowances and entitlements. The Commission emphasised that the overall benefits, such as wage increases, enhanced leave provisions, and better shift penalties, outweighed the detriments. The Commission concluded that the agreement was likely to be accepted by a majority of the employees if properly balloted, thereby meeting the statutory requirement for approval.

The Fair Work Commission approved the AutoNexus Enterprise Agreement - Derrimut Warehouse Operations 2019, finding it to be compliant with the better off overall test. The agreement was set to take effect from the date of the approval, providing a new framework for the employment conditions of the warehouse operations workforce.

AutoNexus Pty Ltd T/A AutoNexus

DECISION

Annexure A

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established