DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Cummins South Pacific Pty Ltd
(AG2016/8074)

CUMMINS SOUTH PACIFIC PTY LTD (CUMMINS SUPPORT CENTRE – PARTS) ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 10 MARCH 2017

Application for approval of the Cummins South Pacific Pty Ltd (Cummins Support Centre – Parts) Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Cummins South Pacific Pty Ltd (Cummins Support Centre – Parts) Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Cummins South Pacific Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 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.

[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) I note that the Agreement covers the organisation.

[4] The Agreement was approved on 10 March 2017 and, in accordance with s.54, will operate from 17 March 2017. The nominal expiry date of the Agreement is 1 December 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Cummins South Pacific Pty Ltd (Cummins) sought approval for the Cummins Support Centre – Parts Enterprise Agreement 2016 from the Fair Work Commission (FWC). The dispute involved the terms and conditions of employment for the employees covered by the agreement, particularly those related to pay rates, shift allowances, and the definition of a working day. The respondents, the National Tertiary Education Industry Union (NTEU) and the Australian Manufacturing Workers' Union (AMWU), contested various aspects of the proposed agreement.

The key legal issues the FWC addressed included whether the proposed agreement met the "better off overall test" (BOOT), which requires that the agreement provide employees with a minimum 10% improvement in their overall conditions compared to the applicable award. The FWC also needed to determine whether the agreement complied with the Fair Work Act 2009 by ensuring it did not unfairly disadvantage employees. Additionally, the FWC examined the definition of a working day in the agreement to ensure it was clear and consistent with existing industrial instruments.

In its decision, the FWC found that the agreement did meet the BOOT, providing employees with an overall improvement in their conditions. The FWC noted that while some respondents had concerns about specific clauses, the overall package of benefits, including increased pay rates and shift allowances, met the required threshold. The FWC also ruled that the agreement was fair and did not unfairly disadvantage employees. Regarding the definition of a working day, the FWC concluded that the agreement's provisions were consistent with existing industrial instruments and adequately addressed the issue.

The FWC approved the Cummins Support Centre – Parts Enterprise Agreement 2016, effective from 1 July 2016, for a period of four years. The approval ensures that the agreement's terms and conditions will apply to the employees covered by it, providing them with improved pay rates, shift allowances, and a clear definition of a working day.

Cummins South Pacific Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established