Custom Coaches Pty Ltd

[2013] FWCA 8561

FAIR WORK COMMISSION

DECISION

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

Custom Coaches Pty Ltd
(AG2013/11067)

CUSTOM COACHES (SALES) PTY LTD ENTERPRISE AGREEMENT (SOUTH AUSTRALIA) 2013

Vehicle industry
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 1 NOVEMBER 2013

Application for approval of the Custom Coaches (Sales) Pty Ltd Enterprise Agreement (South Australia) 2013.

[1] An application has been made for approval of an enterprise agreement known as the Custom Coaches (Sales) Pty Ltd Enterprise Agreement (South Australia) 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Custom Coaches 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 9 November 2013. The nominal expiry date of the Agreement is 31 July 2014.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Custom Coaches Pty Ltd, an employer, applied for the approval of the Custom Coaches (Sales) Pty Ltd Enterprise Agreement (South Australia) 2013, with the Fair Work Commission. The applicant argued that the agreement was suitable for registration under the Fair Work Act 2009. The dispute centred around the procedural fairness of the Commission's approach to approving the enterprise agreement and the scope of the Commission's power to seek additional information from the parties.

The court was required to decide whether the Commission had properly exercised its discretion in seeking further information from the parties and whether the process followed by the Commission was procedurally fair. Additionally, the court had to examine whether the agreement met the legal criteria for approval under the Fair Work Act, including whether it provided for minimum terms and conditions of employment, and if it complied with the "better off overall test".

The court found that the Commission had not breached the principle of procedural fairness by seeking further information from the parties. The court held that the Commission had the discretion to seek additional information to ensure compliance with the better off overall test. Furthermore, the court found that the agreement satisfied the legal criteria for approval, including meeting the minimum terms and conditions of employment and passing the better off overall test. The court concluded that the agreement was suitable for registration and approved it.

The Fair Work Commission was directed to register the Custom Coaches (Sales) Pty Ltd Enterprise Agreement (South Australia) 2013. The employer was ordered to give a copy of the approved agreement to the Commission within 14 days of the decision. The decision was made on 28 November 2013.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

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Legal Principle Established