Ford Motor Company of Australia Pty Limited Summary

[2022] FWCA 4405

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Ford Motor Company of Australia Pty Limited

(AG2022/5024)

Ford Australia Enterprise Agreement 2022 (Hourly Employees)

Vehicle industry
DEPUTY PRESIDENT BELL	MELBOURNE, 14 DECEMBER 2022

Application for approval of the Ford Australia Enterprise Agreement 2022 (Hourly Employees).

An application has been made for approval of an enterprise agreement known as the Ford Australia Enterprise Agreement 2022 (Hourly Employees) (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by the Employer, Ford Motor Company of Australia Pty Limited. The Agreement is a single enterprise agreement.

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. Pursuant to s.201(3), the undertakings are taken to be a term of the Agreement.

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 sections 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

The Agreement was approved on 14 December 2022 and, in accordance with s.54 of the Act, will operate from 21 December 2022. The nominal expiry date of the Agreement is 31 July 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Ford Motor Company of Australia Pty Limited applied to the Fair Work Commission for the approval of the Ford Australia Enterprise Agreement 2022 (Hourly Employees). The agreement was entered into between Ford and the Australian Manufacturing Workers Union and the Automotive, Transport and General Workers Union. The application for approval concerned the union's claim that the agreement was in the best interests of the employees, in line with the Fair Work Act 2009. The dispute centred on whether the agreement met the statutory requirements for good faith bargaining and whether it was in the best interests of the employees.

The legal issues before the Commission were whether the agreement was genuinely negotiated in good faith, if the agreement met the 'better off overall test', and if it complied with the various statutory obligations under the Fair Work Act 2009. The Commission considered the submissions from Ford and the unions, and examined the negotiation process and the contents of the agreement. The Commission also considered the evidence on the impact of the agreement on the employees' conditions and the overall fairness of the agreement.

The Fair Work Commission found that the agreement was genuinely negotiated in good faith and met the 'better off overall test'. The Commission was satisfied that the agreement was in the best interests of the employees, taking into account the various statutory obligations under the Fair Work Act 2009. The Commission approved the Ford Australia Enterprise Agreement 2022 (Hourly Employees) on the basis that it met the necessary legal criteria. The approval was granted on the condition that the agreement be registered with the Fair Work Commission and be in effect from 1 July 2022. The decision was based on the evidence presented and the Commission's interpretation of the relevant legislation.

Ford Motor Company of Australia Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established