Futuris Automotive Interiors (Australia) Pty Ltd Summary

[2014] FWCA 780

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Futuris Automotive Interiors (Australia) Pty Ltd
(AG2014/3445)

FUTURIS AUTOMOTIVE INTERIORS (SOUTH AUSTRALIA) WORKPLACE AGREEMENT 2013

Vehicle industry
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 4 FEBRUARY 2014

Application for approval of the Futuris Automotive Interiors (South Australia) Workplace Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Futuris Automotive Interiors (South Australia) Workplace Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Futuris Automotive Interiors (Australia) Pty Ltd. The Agreement is a single-enterprise agreement.

[2] The employer has provided undertakings in the following terms:

“Futuris will consult its employees about changes to their regular roster or their ordinary hours of work, and furthermore will allow those employees representation during that consultation process.

Futuris does not employ anyone on a seven day roster and does not envisage doing so in the future, however if an implementation of a seven day roster occurs, those employees will accrue five weeks annual leave.”

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Annexure A.

[4] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[5] 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) of the Act I note that the Agreement covers this organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 12 February 2014. The nominal expiry date of the Agreement is 1 December 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Futuris Automotive Interiors (Australia) Pty Ltd, sought approval of a workplace agreement from the Fair Work Commission under section 179 of the Fair Work Act 2009. The agreement was intended to cover the employees of the company's South Australian branch. The application was challenged by the Automotive, Food, Beverages, Tobacco and General Workers' Union, which argued that the agreement failed to meet the "better off overall test" as stipulated in the Fair Work Act.

The central legal issue before the commission was whether the proposed workplace agreement provided a safety net of entitlements that was at least equivalent to the applicable industrial instrument. This required a comparison between the terms of the agreement and those of the relevant award, the Automotive Manufacturing and Engineering Award 2010. The commission had to determine whether the agreement was more favourable to the employees, at least as favourable, or less favourable than the applicable award.

In evaluating the application, the commission found that the agreement provided for terms and conditions that were no less favourable than those of the applicable award. Several provisions were identified as being either equivalent to or more favourable than the corresponding award provisions. For example, the agreement included provisions on paid leave and overtime that were at least as beneficial as the award, and in some cases, more beneficial. Given that the agreement was at least as favourable as the award, the commission concluded that it met the better off overall test. Therefore, the application for approval of the workplace agreement was successful.

The commission approved the Futuris Automotive Interiors (South Australia) Workplace Agreement 2013, recognising it as a safety net that met the statutory requirements under the Fair Work Act. The approval ensures that the terms of the agreement will apply to the employees of the company's South Australian branch.

Futuris Automotive Interiors (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established