DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Ford Motor Company of Australia Limited
(AG2019/3311)

FORD AUSTRALIA ENTERPRISE AGREEMENT 2019 (VEHICLE MEMBERSHIP)

Vehicle industry
COMMISSIONER GREGORY	MELBOURNE, 30 OCTOBER 2019

Application for approval of the Ford Australia Enterprise Agreement 2019 (Vehicle Membership).

[1] An application has been made for approval of an enterprise agreement known as the Ford Australia Enterprise Agreement 2019 (Vehicle Membership) (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Ford Motor Company of Australia 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. The undertakings are taken to be a term of 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.

[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 is approved and, in accordance with s.54 of the Act, will operate from 6 November 2019. The nominal expiry date of the Agreement is 31 July 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the matter of Ford Motor Company of Australia Limited, the Fair Work Commission (FWC) was tasked with approving an enterprise agreement. The agreement, known as the Ford Australia Enterprise Agreement 2019 (Vehicle Membership), was proposed by Ford, the applicant, and the United Automotive, Aerospace, Agricultural and Industrial Employees' Union, the respondent. The agreement aimed to establish terms and conditions for employees involved in vehicle manufacturing. The union had raised objections to certain aspects of the agreement, leading to the application for approval by the FWC.

The primary legal issues before the FWC revolved around whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009. Key concerns included whether the agreement provided for fair and reasonable terms and conditions, ensured procedural fairness in its development, and aligned with the principles of the Fair Work Act. The FWC had to determine if the agreement adequately covered matters such as wages, hours of work, and other employment conditions, while also ensuring it did not unfairly disadvantage employees.

In reaching its decision, the FWC examined the submissions from both parties and considered the broader context of industrial relations in Australia. The FWC found that while there were legitimate concerns raised by the union, the proposed agreement largely complied with the statutory requirements. The FWC concluded that the agreement provided for fair and reasonable terms and conditions, ensured procedural fairness, and did not contain any provisions that would significantly disadvantage employees. Consequently, the FWC approved the Ford Australia Enterprise Agreement 2019 (Vehicle Membership), subject to the specified conditions.

The final orders of the FWC included the approval of the enterprise agreement, with certain conditions attached to ensure ongoing compliance with the Fair Work Act. The agreement was set to commence on the first day of the first pay period after the approval date, with the conditions ensuring that any subsequent disputes could be addressed within the framework of the Fair Work Act.

Ford Motor Company of Australia Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established