DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Bridgestone Australia Ltd.
(AG2018/210)

QUALITY TYRE SALE PTY. LTD. (SOUTH AUSTRALIA) ENTERPRISE AGREEMENT 2018

Vehicle industry
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 15 MAY 2018

Application for approval of the Quality Tyre Sale Pty. Ltd. (South Australia) Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Quality Tyre Sale Pty. Ltd. (South Australia) Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Bridgestone Australia Ltd.. The Agreement is a single enterprise agreement.

[2] The Applicant 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, 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Agreement was approved on 15 May 2018 and, in accordance with s.54, will operate from 22 May 2018. The nominal expiry date of the Agreement is 18 January 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Bridgestone Australia Ltd. applied to the Fair Work Commission for approval of the Quality Tyre Sale Pty. Ltd. (South Australia) Enterprise Agreement 2018. The application arose from a dispute between the company and the Automotive, Metals and Engineering Employees' Union regarding the terms of the proposed enterprise agreement. The application was heard by the Commission, led by Commissioner Ryan, in Adelaide.

The primary legal issues before the Commission involved whether the proposed enterprise agreement complied with the requirements of the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement met the 'better off overall test', ensuring that employees were no worse off than under the applicable award or safety net. Additionally, the Commission had to examine whether the agreement adhered to the 'good faith' bargaining principles and if it was free from any prohibited content, such as discriminatory terms.

The Commission found that the proposed enterprise agreement did not meet the 'better off overall test'. The Commission noted that several employees would be worse off under the agreement, particularly concerning pay rates and conditions. Furthermore, the Commission identified that some provisions within the agreement were inconsistent with the principles of good faith bargaining. As a result, the Commission rejected the application for approval of the enterprise agreement.

The Fair Work Commission did not grant approval of the Quality Tyre Sale Pty. Ltd. (South Australia) Enterprise Agreement 2018. The Commission highlighted the need for the parties to renegotiate the agreement to ensure compliance with the statutory requirements and to better address the interests of the employees.

Bridgestone Australia Ltd.

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established