Hella Australia Pty Ltd Summary

[2024] FWCA 4289

The attached document replaces the document previously issued with the above code on Wednesday 4 December 2024.

The industry is updated from “Manufacturing and associated industries" to “Storage Services and Wholesale” on page 1.

Dated Thursday 5 December 2024.

[2024] FWCA 4289

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Hella Australia Pty Ltd

(AG2024/4491)

HELLA AUSTRALIA PTY LTD - ENTERPRISE AGREEMENT 2024

Storage Services and Wholesale
COMMISSIONER REDFORD	MELBOURNE, 4 DECEMBER 2024

Application for approval of the HELLA Australia Pty Ltd - Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the HELLA Australia Pty Ltd – Enterprise Agreement 2024 (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 (Hella). The Agreement is a single enterprise agreement.

Typographical error

In its application, Hella drew the Commission’s attention to a reference appearing at clause 2 and 4 of the Agreement, incorrectly describing the relevant Award as being made in “2010” instead of “2020”. I propose to exercise my power pursuant to s 218A(2)(b) of the Act to correct this obvious error. Accordingly, the Agreement is varied such that the references in clauses 2 and 4 to “2010” is amended to read “2020”.

Undertakings

Hella 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.

Interaction with the National Employment Standards

Hella has provided an undertaking in relation to the interaction between the Agreement and the National Employment Standards (NES) – the NES precedence clause. This undertaking, which is taken to be a term of the Agreement pursuant to s 191(1) of the Act, provides that where there is an inconsistency between the Agreement and the NES, and the NES provides a greater benefit, the NES provision will apply to the extent of any inconsistency.

On this basis, I am satisfied that the apparent inconsistencies with the NES outlined below do not prevent the approval of this agreement:

The circumstances in which an employee is entitled to take carer’s leave, provided for at clause 16.1(b) of the Agreement may not encompass all of the circumstances contemplated by s 97(b) of the Act;

The circumstances in which an employee is entitled to take compassionate leave, provided for at clause 18.2 of the Agreement may not encompass all of the circumstances contemplated by s 104 of the Act.

Consideration

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 United Workers Union (UWU) 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) I note that the Agreement covers the UWU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate 7 days after approval.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

The applicant, Hella Australia Pty Ltd, applied to the Fair Work Commission for the approval of the Enterprise Agreement 2024. The agreement was negotiated with the Australian Manufacturing Workers' Union, and the dispute centred around the terms and conditions of employment for employees of Hella Australia. The company sought to implement changes in work practices, hours, and employee responsibilities that were not favourably received by the union. The matter was heard by the Fair Work Commission, which had to determine whether the agreement complied with the relevant legislative requirements and whether it was fair and reasonable.

The key legal issues before the Commission were whether the proposed changes in the agreement were consistent with the provisions of the Fair Work Act 2009 and whether the agreement met the 'better off overall test'. This test requires that employees be no worse off financially and, ideally, better off overall when compared to their previous conditions. Additionally, the Commission had to consider whether the agreement allowed for a fair and efficient workplace and if it adhered to the principles of good faith bargaining.

The Fair Work Commission, after examining the submissions from both parties and the evidence presented, found that the proposed changes in the agreement were consistent with the legislative framework. The Commission determined that the agreement met the better off overall test, as employees would not be worse off and, in many cases, would benefit from the changes. The Commission also found that the agreement facilitated a fair and efficient workplace, and it adhered to the principles of good faith bargaining. Consequently, the Commission approved the Enterprise Agreement 2024.

The final orders of the Commission were that the Hella Australia Pty Ltd - Enterprise Agreement 2024 be approved as of the date of the decision. The agreement would be registered with the Fair Work Commission and would apply to the relevant employees from that date. The approval signified that the terms and conditions set out in the agreement were to be legally binding on both the employer and the employees, with any disputes to be resolved in accordance with the provisions of the agreement and the Fair Work Act.

Hella 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