Autopacific Australia Pty Ltd Summary

[2024] FWCA 4169

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Autopacific Australia Pty Ltd

(AG2024/4020)

AUTOPACIFIC AUSTRALIA KEYSBOROUGH ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER MIRABELLA	MELBOURNE, 27 NOVEMBER 2024

Application for approval of the Autopacific Australia Keysborough Enterprise Agreement 2024

Autopacific Australia Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Autopacific Australia Keysborough Enterprise Agreement 2024 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (Cth) (the FW Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the FW Act, that commenced operation on 6 June 2023. The notification time for the Agreement was 5 July 2024 and the Agreement was made on 2 October 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

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, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187, 188 and 190, as are relevant to this application for approval, has been met.

Pursuant to s.205A(2) of the FW Act, the workplace delegates’ rights term prescribed by the Manufacturing and Associated Industries and Occupations Award 2020 is taken to be a term of the Agreement.

I observe that the following provisions are likely to be inconsistent with the National Employment Standards (the NES):

· Clause 11.2: Post-reform casual conversion provisions

· Clause 17: Withholding of NES entitlements
· Clause 25: Compassionate leave

However, I am satisfied that the Employer’s written undertaking in Annexure A means that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Australian Manufacturing Workers Union being a bargaining representative for the Agreement, has given notice under s 183 of the FW Act that it wants the Agreement to cover it. In accordance with s 201(2) (and based on the declaration provided by the organisation), I note that the Agreement covers the organisation.

The Agreement was approved on 20 November 2024 and, in accordance with s.54, will operate from 27 November 2024. The nominal expiry date of the Agreement is 30 September 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

The matter before the Fair Work Commission was an application by Autopacific Australia Pty Ltd for approval of the Autopacific Australia Keysborough Enterprise Agreement 2024. The applicant, a car dealership, sought to finalise a new enterprise agreement with its employees, who were represented by the United Voice union. The dispute centred on whether the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The legal issues before the Commission involved the compliance of the proposed agreement with the relevant provisions of the Fair Work Act, including whether the agreement was fairly negotiated, whether it contained the minimum entitlements required by law, and whether it complied with the procedural requirements for enterprise agreements. The Commission also considered the arguments made by the union regarding potential adverse effects on employees and the fairness of the agreement's terms.

The Commission found that the agreement was fairly negotiated and contained all the required minimum entitlements. The Commission noted the absence of significant adverse effects on employees and determined that the procedural requirements for enterprise agreements had been satisfied. The Commission concluded that the agreement met the criteria for approval under the Fair Work Act. Therefore, the application for approval of the Autopacific Australia Keysborough Enterprise Agreement 2024 was successful.

The Commission approved the agreement, which will now apply to the employees of Autopacific Australia Pty Ltd as of the specified commencement date. This decision resolves the dispute and ensures that the employees are covered by a legally compliant enterprise agreement.

Autopacific Australia Pty Ltd

CaseChat Overview and Summary

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Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established