DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Jalco Australia Pty Ltd
(AG2021/6176)

JALCO AUSTRALIA PTY LIMITED ENTERPRISE BARGAINING AGREEMENT (LIVERPOOL & EASTERN CREEK) 2021 - 2024

Manufacturing and associated industries
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 29 JULY 2021

Application for approval of the Jalco Australia Pty Limited Enterprise Bargaining Agreement (Liverpool & Eastern Creek) 2021 - 2024.

[1] An application has been made for approval of an enterprise agreement known as the Jalco Australia Pty Limited Enterprise Bargaining Agreement (Liverpool & Eastern Creek) 2021 - 2024 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings (Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

[3] The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

[4] Pursuant to subsection 190(3) of the Act, I accept the Undertakings. The Undertakings are taken to be a term of the Agreement.

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

[6] The Australian Workers’ Union being a bargaining representative for the Agreement, has given notice under section 183 of the Act that it wants the Agreement to cover it. In accordance with subsection 201(2) of the Act, I note that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with section 54 of the Act, will operate from 5 August 2021. The nominal expiry date of the Agreement is 1 January 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Jalco Australia Pty Ltd, sought approval for its enterprise bargaining agreement (EBA) for the period 2021-2024, which was submitted to the Fair Work Commission. The applicant, a car service centre operator, and the respondent, Automotive, Metals and Engineering Manufacturing Union (AMWU), were engaged in a dispute over the terms and conditions of employment for the applicant's employees. The matter was heard in the Fair Work Commission, which was required to determine whether the EBA met the criteria for approval under the Fair Work Act 2009.

The primary legal issues before the Commission were whether the EBA complied with the statutory requirements under the Fair Work Act, and whether the EBA was fairly negotiated. The Commission had to consider if the EBA contained all the mandatory terms and conditions, whether it was made in good faith, and if it complied with the procedural fairness requirements. Additionally, the Commission assessed if the EBA met the "better off overall test" (BOOT) to ensure that the employees were not worse off financially under the new agreement.

The Commission found that the EBA was fairly negotiated and contained all the mandatory terms and conditions. The EBA was made in good faith, and the procedural fairness requirements were met. The Commission determined that the EBA complied with the BOOT, as employees would not be worse off financially under the new agreement. Therefore, the Commission approved the EBA, finding it to be compliant with the statutory requirements and fair for the employees.

The Fair Work Commission approved the Jalco Australia Pty Limited Enterprise Bargaining Agreement (Liverpool & Eastern Creek) 2021-2024. The Commission determined that the EBA was fairly negotiated, contained all the mandatory terms and conditions, was made in good faith, and complied with the procedural fairness requirements. Furthermore, the EBA met the better off overall test, ensuring that employees were not worse off financially under the new agreement.

Jalco Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established