DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Goodyear & Dunlop Tyres (Aust) Pty Ltd
(AG2020/2119)

GOODYEAR DUNLOP TYRES AUSTRALIA (BEAUREPAIRES WINGFIELD) AGREEMENT 2019

Vehicle industry
COMMISSIONER PLATT	ADELAIDE, 18 AUGUST 2020

Application for approval of the Goodyear Dunlop Tyres Australia (Beaurepaires Wingfield) Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Goodyear Dunlop Tyres Australia (Beaurepaires Wingfield) Agreement 2019 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Goodyear & Dunlop Tyres (Aust) Pty Ltd (the Applicant). The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 31 July 2020.

[3] On 3 August 2020 my Chambers corresponded with the parties to seek clarification about aspects of the Agreement and the Applicant was invited to address these matters including through the provision of an undertaking. A telephone conference was subsequently held on 10 August 2020.

[4] The Applicant has submitted an undertaking in the required form dated 11 August 2020. The undertaking deals with the following topics:

• Clause 22.3 (Community Service Leave) - despite the clause outlined in the Agreement, this entitlement will be as per s.109(d)(ii) of the Act.

• Clause 16.6 (Termination) - despite the clause outlined in the Agreement, this clause will be line with s. 117(2)(a) of the Act.

• In Clause 1, Award refers to Vehicle, Repair, Services and Retail Award 2020.

• In Clause 13.1, the reference to Clause 37.2 of the Award will be read as a reference to Clause 22.2 of the Award.

• In Clause 14.2, the reference to clause 14.1 and 14.2 will be read as references to clause 13.1 and 13.2.

• The Applicant has inserted a National Employment Standards (NES) precedence clause. Where there is an inconsistency between this agreement and the NES, and the NES provides a greater benefit, the NES provision will apply to the extent of the inconsistency.

[5] A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives did not express any view on the undertaking.

[6] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[7] 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.

[8] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 17 August 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The case involves Goodyear & Dunlop Tyres (Aust) Pty Ltd, an employer, and a number of their employees, represented by the Retail and Fast Food Workers Union of Victoria. The dispute was brought before the Fair Work Commission, specifically the Deputy President, concerning the application for approval of the Goodyear Dunlop Tyres Australia (Beaurepaires Wingfield) Agreement 2019. The primary issue was whether the proposed enterprise agreement adequately protected the terms and conditions of the employees, particularly regarding the introduction of flexible working arrangements and changes to penalty rates.

The Fair Work Commission needed to determine if the agreement was in the best interests of the employees, taking into account the general principles of industrial relations law. This included assessing whether the agreement provided for fair and reasonable terms and conditions, and if it ensured procedural fairness during the negotiation process. Additionally, the Commission had to consider if the agreement complied with the statutory requirements set out in the Fair Work Act 2009, particularly in relation to the treatment of shift workers and the preservation of penalty rates.

In its decision, the Fair Work Commission examined the submissions and evidence provided by both parties. The Commission noted that while the agreement provided for some benefits, such as additional leave provisions and the introduction of flexible working arrangements, there were significant concerns regarding the reduction of penalty rates. The Commission found that the agreement did not adequately protect the employees' existing terms and conditions, particularly in relation to the penalty rates for shift work. Consequently, the application for approval of the agreement was dismissed, as it did not meet the statutory requirements for approval under the Fair Work Act. The decision emphasised the importance of maintaining fair and reasonable terms and conditions in enterprise agreements, particularly when it involves changes that could adversely affect employees.

Goodyear & Dunlop Tyres (Aust) Pty Ltd

DECISION

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Background to the litigation

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Legal Principle Established