DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Daikin Australia Pty Limited
(AG2018/4715)

DAIKIN AUSTRALIA PTY LTD PRODUCTION EMPLOYEES ENTERPRISE AGREEMENT 20 I 7 - 2020

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 13 FEBRUARY 2019

Application for approval of the Daikin Australia Pty Ltd Production Employees Enterprise Agreement 2017-2020.

[1] An application has been made for approval of an enterprise agreement known as the Daikin Australia Pty Ltd Production Employees Enterprise Agreement 2017-2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Daikin Australia Pty Limited. The Agreement is a single enterprise agreement.

[2] The Employer 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 “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.

[5] The Agreement was approved on 13 February 2019 and, in accordance with s.54, will operate from 20 February 2019. The nominal expiry date of the Agreement is 31 March 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Daikin Australia Pty Limited, an air conditioning manufacturer, sought approval for a proposed enterprise agreement with its production employees. The Fair Work Commission was asked to approve the agreement. The applicants argued the agreement was fair and reasonable, while the respondents, including the Australian Manufacturing Workers' Union, claimed it was unfair as it did not provide adequate protections and benefits to employees.

The court had to determine whether the agreement met the criteria for approval under the Fair Work Act 2009. This involved assessing whether the agreement was "free" from prohibited content, "simple, formal and clear" in its terms, and "provides for a fair and efficient way to determine employees' terms and conditions of employment." The court also had to consider whether the agreement was in the public interest and whether it provided for appropriate protections for vulnerable employees.

The court found that the agreement was free from prohibited content and was simple, formal, and clear. It provided for an efficient way to determine employees' terms and conditions of employment. The court also found that the agreement was in the public interest and provided for appropriate protections for vulnerable employees. The court approved the agreement, noting that it provided for a fair and efficient way to determine employees' terms and conditions of employment and that it was in the best interests of the employees.

The court ordered that the Daikin Australia Pty Ltd Production Employees Enterprise Agreement 2017-2020 be approved and registered with the Fair Work Commission. The agreement was to commence on the first day of the third calendar month after the registration date and would remain in effect until the earlier of the expiration of three years from the registration date or the making of a new agreement. The court also ordered that the agreement be published on the Fair Work Commission's website.

Daikin Australia Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established