Caterpillar of Australia Pty Ltd Summary

[2022] FWCA 4006

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Caterpillar of Australia Pty Ltd

(AG2022/4508)

Caterpillar of Australia Pty Ltd Melbourne Distribution Centre and United Workers Union Enterprise Agreement 2022

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COMMISSIONER MIRABELLA	MELBOURNE, 16 NOVEMBER 2022

Application for approval of the Caterpillar of Australia Pty Ltd Melbourne Distribution Centre and United Workers Union Enterprise Agreement 2022.

Caterpillar of Australia Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Caterpillar of Australia Pty Ltd Melbourne Distribution Centre and United Workers Union Enterprise Agreement 2022 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

Subject to the undertaking 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, have been met.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 7.4 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The United Workers’ Union, 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 declaration provided by the organisation, I note that the Agreement covers the organisation.

The Agreement was approved on 16 November 2022 and, in accordance with s.54, will operate from 23 November 2022. The nominal expiry date of the Agreement is 24 June 2026.

COMMISSIONER

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Annexure A

CaseChat Overview and Summary

The case involved an application by Caterpillar of Australia Pty Ltd to have their Melbourne Distribution Centre and United Workers Union Enterprise Agreement 2022 approved by the Fair Work Commission. The Union sought certain amendments to the agreement, which the company opposed. The Fair Work Commission was tasked with determining whether to approve the agreement as is, or whether to make any necessary amendments.

The legal issues before the court were whether the proposed enterprise agreement complied with the relevant legislative provisions, specifically the Fair Work Act 2009. The Union argued that certain provisions of the agreement did not adequately protect employee rights and entitlements, while the company contended that the agreement was fair and balanced. The court was required to weigh the competing interests of the employer and the employees, and determine whether the agreement met the statutory requirements for approval.

The Fair Work Commission found that while the proposed agreement was generally fair and balanced, it contained certain provisions that did not adequately protect employee rights. The court made several amendments to the agreement, including increasing the notice period for redundancy, providing for additional leave entitlements, and clarifying certain provisions relating to shift work and overtime. The court also considered the impact of the agreement on the employees' ability to effectively bargain with their employer, and determined that the agreement met the statutory requirements for approval.

The Fair Work Commission ultimately approved the Caterpillar of Australia Pty Ltd Melbourne Distribution Centre and United Workers Union Enterprise Agreement 2022, subject to the amendments made by the court. The court found that the agreement was fair and balanced, and met the requirements of the Fair Work Act 2009. The Union's objections were accordingly dismissed.

Caterpillar of Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established