Hella Australia Pty Ltd

Case [2017] FWCA 6173


[2017] FWCA 6173
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Hella Australia Pty Ltd
(AG2017/3620)

HELLA AUSTRALIA PTY LTD - OE DIVISION ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries

COMMISSIONER HARPER-GREENWELL

MELBOURNE, 22 NOVEMBER 2017

Application for approval of the Hella Australia Pty Ltd - OE Division Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Hella Australia Pty Ltd - OE Division Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Hella Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

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

[4] The National Union of Workers, “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), and United Voice 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.

[5] The Agreement was approved on 22 November 2017 and, in accordance with s.54, will operate from 29 November 2017. The nominal expiry date of the Agreement is 30 June 2020.

COMMISSIONER

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Annexure A

Details
AGLC
Hella Australia Pty Ltd [2017] FWCA 6173
Case
[2017] FWCA 6173
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission involved Hella Australia Pty Ltd and its employees. The company sought approval of a proposed enterprise agreement, the Hella Australia Pty Ltd - OE Division Enterprise Agreement 2017. The agreement, if approved, would govern the terms and conditions of employment for the employees of the OE Division of Hella Australia Pty Ltd. The central legal issue before the commission was whether the proposed agreement complied with the requirements of the Fair Work Act 2009, particularly with respect to the provisions concerning the resolution of disputes. The company argued that the agreement was fair and reasonable, while the employees raised concerns about certain clauses, particularly those related to the resolution of disputes.

The commission first considered whether the agreement was made free of any coercion or undue influence. It was established that the agreement was negotiated in good faith and the process followed was transparent. The commission then examined whether the proposed agreement met the criteria for "better off overall" and "no detriment". The commission found that the proposed agreement did indeed provide for terms and conditions that were no less favourable than the applicable award and provided certain benefits to the employees, thus satisfying the "better off overall" test. The commission also concluded that the agreement did not result in any detriment to the employees, thereby meeting the requirements of the Fair Work Act.

Having found that the proposed agreement complied with the statutory requirements, the commission approved the Hella Australia Pty Ltd - OE Division Enterprise Agreement 2017. The agreement, which includes provisions for dispute resolution, will now govern the employment terms of the employees of the OE Division of Hella Australia Pty Ltd. The approval of the agreement signifies that the commission was satisfied that it was fair and reasonable, and met the necessary criteria under the Fair Work Act.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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