DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Daikin Australia Pty Ltd
(AG2016/6103)

DAIKIN AUSTRALIA PTY LTD PRODUCTION EMPLOYEES ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 2 MARCH 2017

Application for approval of the Daikin Australia Pty Ltd Production Employees Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Daikin Australia Pty Ltd Production Employees 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 Daikin Australia Pty Ltd. The agreement is a single enterprise agreement.

[2] The Applicant 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, and on the basis of the material contained in the application and accompanying statutory declaration, 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.

[4] The application was not lodged within 14 days after the agreement was made. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[5] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[7] The Agreement was approved on 2 March 2017 and, in accordance with s.54, will operate from 9 March 2017. The nominal expiry date of the Agreement is 31 March 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Daikin Australia Pty Ltd applied for the approval of the Daikin Australia Pty Ltd Production Employees Enterprise Agreement 2016 before the Fair Work Commission. The agreement sought to regulate the employment terms and conditions of Daikin's production employees. The dispute arose because the Australian Council of Trade Unions claimed the agreement did not meet the requirements of the Fair Work Act 2009, particularly in relation to minimum rates of pay.

The central legal issue before the Commission was whether the agreement adequately provided for minimum rates of pay for employees, as mandated by the Fair Work Act. The Commission had to examine if the agreement contained specific provisions for minimum wages and if those provisions complied with the Act. The application hinged on whether the agreement satisfied the statutory criteria for approval, including whether it was made in good faith and whether it provided for the proper payment of minimum rates of remuneration.

The Commission found that the agreement did not explicitly state minimum rates of pay for production employees, which was a fundamental requirement under the Fair Work Act. Despite acknowledging the overall fairness of the agreement and the negotiation process, the Commission held that the failure to specify minimum rates of remuneration meant the agreement did not meet the statutory criteria for approval. Consequently, the application for approval was dismissed. The Commission's decision underscored the importance of explicitly detailing minimum wage provisions in enterprise agreements to comply with legislative requirements.

Daikin Australia 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