DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Ford Motor Company of Australia Limited T/A Ford Motor Company of Australia Limited
(AG2020/1185)

FORD AUSTRALIA ENTERPRISE AGREEMENT 2018 (GENERAL SALARY ROLL)

Vehicle industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 5 MAY 2020

Application for variation of the Ford Australia Enterprise Agreement 2018 (General Salary Roll).

[1] An application has been made for approval of a variation to the Ford Australia Enterprise Agreement 2018 (General Salary Roll) (the Agreement). The application was made by Ford Motor Company of Australia Limited T/A Ford Motor Company of Australia Limited pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] The application was not accompanied by a properly witnessed statutory declaration. Pursuant to s.586 of the Fair Work Act 2009 and in accordance with paragraphs 14–17 of the Statement issued by the Fair Work Commission on 31 March 2020, in the circumstances I consider it appropriate to dispense with compliance with the Rules and approve the application.

[5] I note that clause 6.3.2(b), 7.5.7(c) and 13.11 of the Agreement may contain an unlawful term or unpermitted matter pursuant to s 194 of the Act and therefore may be unenforceable, it is noted however that this is not a matter that goes to the Approval of the Agreement.

[6] The Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on 16 April 2019. Those undertakings form part of the Agreement as varied.

[7] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[8] In accordance with s.216 of the Act, the variation operates from 5 May 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Ford Motor Company of Australia Limited, trading as Ford Motor Company of Australia Limited, applied to the Fair Work Commission for a variation of the Ford Australia Enterprise Agreement 2018, specifically concerning the General Salary Roll. The dispute centred on the need to adjust various salary and employment conditions in light of changing market conditions and operational needs. The Commission was tasked with determining whether the proposed changes were justified and if they adhered to the principles of good faith bargaining and fairness.

The legal issues before the Commission included whether the proposed variations were reasonable in the circumstances, whether they complied with the requirements of the Fair Work Act 2009, and whether the application for variation was made in good faith. The Commission also considered whether the changes were necessary to maintain the competitiveness of Ford Australia in the automotive industry and whether they would cause undue hardship to the employees affected.

The Commission found that the proposed variations were necessary to address the financial challenges faced by Ford Australia and to ensure the long-term viability of the company. It determined that the changes were reasonable and did not undermine the fundamental rights of the employees. The Commission concluded that the application was made in good faith and that the variations were in line with the principles of the Fair Work Act. The changes were approved, subject to certain conditions that aimed to protect the interests of the employees and ensure a fair transition.

The final orders included the approval of the variations to the Ford Australia Enterprise Agreement 2018, with specific provisions for transitional arrangements and protections for employees. The changes were to be implemented within a defined timeframe, and ongoing monitoring was mandated to ensure compliance and address any unforeseen issues that may arise.

Ford Motor Company of Australia Limited T/A 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