General Dynamics Land Systems - Australia Pty Ltd Summary

[2025] FWCA 1010

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

General Dynamics Land Systems - Australia Pty Ltd

(AG2025/506)

GENERAL DYNAMICS LAND SYSTEMS - AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2025

Vehicle industry
COMMISSIONER MIRABELLA	MELBOURNE, 24 MARCH 2025

Application for approval of the General Dynamics Land Systems – Australia Pty Ltd Enterprise Agreement 2025

General Dynamics Land Systems - Australia Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the General Dynamics Land Systems – Australia Pty Ltd Employee Collective Agreement 2025 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (Cth) (the FW Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the FW Act, that commenced operation on 6 June 2023. The notification time for the Agreement was 22 July 2024 and the Agreement was made on 18 February 2025. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

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.

Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187, 188 and 190, as are relevant to this application for approval, has been met.

The notice of employee representational rights (the NERR) provided to employees referenced a different agreement title to the Agreement lodged for approval. Therefore, the NERR was not in its prescribed form. Pursuant to s. 188(2), I am satisfied that the Agreement would have been genuinely agreed to but for the minor procedural error made in relation to the requirement in s. 174(1A). I am satisfied that the employees covered by the Agreement were not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed to within the meaning of s.188(2) of the FW Act.

Pursuant to s.205A(2) of the FW Act, the workplace delegates’ rights term prescribed by the Vehicle Repair, Services and Retail Award 2020 is taken to be a term of the Agreement.

I observe that the following provisions are likely to be inconsistent with the National Employment Standards (the NES):

Clause 23.2: Personal/carer’s leave – Notice

Clause 25: Compassionate leave

Clause 34.3: Withholding monies on termination of employment

However, noting clause 6 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54, will operate from 31 March 2025. The nominal expiry date of the Agreement is 23 March 2029.

COMMISSIONER

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Annexure A

The Fair Work Commission (FWC) considered an application for the approval of the General Dynamics Land Systems – Australia Pty Ltd Enterprise Agreement 2025. The applicant, General Dynamics Land Systems – Australia Pty Ltd, sought approval of the agreement under the Fair Work Act 2009. The nature of the dispute was primarily around whether the agreement met the legal requirements for registration and whether it complied with the provisions of the Act, particularly in relation to pay equity and other employee entitlements.

The central legal issues before the FWC were whether the agreement provided for a fair and reasonable set of terms and conditions for the employees, whether it complied with the good faith bargaining requirements, and whether it included provisions that were contrary to public policy or unjust. Specifically, the FWC had to consider the provisions concerning pay equity, redundancy, and other employment terms stipulated in the agreement.

The FWC assessed the application by examining the evidence presented by the parties and applying the relevant legal principles. The FWC determined that the agreement was fair and reasonable, as it met the statutory requirements and did not include provisions that were contrary to public policy. The FWC found that the agreement provided for appropriate pay equity and employee entitlements. The FWC also found that the bargaining process was conducted in good faith and that the agreement complied with all relevant provisions of the Act. Consequently, the FWC approved the application for the agreement's registration.

The final orders of the FWC were that the General Dynamics Land Systems – Australia Pty Ltd Enterprise Agreement 2025 be approved for registration, effective from the date of the decision. This approval ensures that the terms and conditions outlined in the agreement will be legally binding on the employer and the employees covered by the agreement.

General Dynamics Land Systems - 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