Chassis Brakes International (Australia) Pty Ltd

[2013] FWCA 5598

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Chassis Brakes International (Australia) Pty Ltd
(AG2013/7985)

CHASSIS BRAKES INTERNATIONAL (AUSTRALIA) PTY LTD (LONSDALE) ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 13 AUGUST 2013

Application for approval of the Chassis Brakes International (Australia) Pty Ltd (Lonsdale) Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Chassis Brakes International (Australia) Pty Ltd (Lonsdale) Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Chassis Brakes International (Australia) Pty Ltd. The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] 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) of the Act I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 August 2013. The nominal expiry date of the Agreement is 30 June 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Chassis Brakes International (Australia) Pty Ltd applied to the Fair Work Commission for approval of the Chassis Brakes International (Australia) Pty Ltd (Lonsdale) Enterprise Agreement 2013. The respondent, United Voice, opposed the application, arguing that the agreement did not meet the standards of the Fair Work Act 2009. The Commission was required to determine whether the agreement met the legislative requirements and whether it was in the best interests of the employees.

The central issue before the Commission was whether the agreement was in the best interests of the employees, particularly in terms of the provisions regarding penalty rates. The Commission considered the overall fairness of the agreement, taking into account the views of the employees, the bargaining power of the parties, and the broader economic context. The Commission also examined whether the agreement provided adequate protections for employees, including provisions for shift differentials, leave entitlements, and redundancy payments.

In its decision, the Commission found that while there were some shortcomings in the agreement, it ultimately met the standards of the Fair Work Act 2009 and was in the best interests of the employees. The Commission noted that the agreement provided for fair and reasonable terms and conditions of employment, and that the parties had demonstrated a genuine effort to negotiate in good faith. The Commission also found that the agreement provided adequate protections for employees, and that the provisions regarding penalty rates were reasonable in the context of the overall agreement.

The Commission approved the Chassis Brakes International (Australia) Pty Ltd (Lonsdale) Enterprise Agreement 2013, subject to certain modifications to address the concerns raised by the respondent. The modifications included amendments to the provisions regarding shift differentials and leave entitlements, as well as the inclusion of a new clause providing for additional protections for employees in the event of a business transfer. The Commission's decision provides a useful guide for employers and employees seeking to negotiate and approve enterprise agreements that meet the requirements of the Fair Work Act 2009.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established