John Deere Limited

[2024] FWCA 3264

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

John Deere Limited

(AG2024/3118)

JOHN DEERE LIMITED (AUSTRALIAN AND NEW ZEALAND DISTRIBUTION CENTRE) ENTERPRISE AGREEMENT 2024

Storage services
COMMISSIONER MIRABELLA	MELBOURNE, 16 SEPTEMBER 2024

Application for approval of the John Deere Limited (Australian and New Zealand Distribution Centre) Enterprise Agreement 2024.

John Deere Limited (the Employer) has made an application for approval of an enterprise agreement known as the John Deere Limited (Australian and New Zealand Distribution Centre) Enterprise Agreement 2024 (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 4 April 2024 and the Agreement was made on 8 August 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

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 and 188, as are relevant to this application for approval, has been met.

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

· Clause 19(3): Personal, carer’s and compassionate leave

· Clause 21(c): Substitution of public holidays

However, noting clause 8(c) 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 United Workers’ Union, being a bargaining representative for the Agreement, has given notice under s.183 of the FW Act that it wants the Agreement to cover it. In accordance with s.201(2), and based on the declaration provided by the organisation, I note that the Agreement covers the organisation.

The Agreement was approved on 16 September 2024 and, in accordance with s.54, will operate from 23 September 2024. The nominal expiry date of the Agreement is 31 October 2027.

COMMISSIONER

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CaseChat Overview and Summary

John Deere Limited applied to the Fair Work Commission for approval of the John Deere Limited (Australian and New Zealand Distribution Centre) Enterprise Agreement 2024. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute centred on the terms and conditions of employment for workers within the distribution centre, including issues such as wages, working hours, and conditions of redundancy.

The Commission was required to determine whether the proposed agreement met the criteria for approval under the Fair Work Act 2009. This included assessing whether the agreement provided for fair and reasonable terms and conditions, and whether it had been negotiated in good faith. The Commission also considered the impact of the agreement on the workforce, including the balance of power between the parties and the adequacy of the agreement in protecting employees' rights and interests.

The Commission found that the agreement was fair and reasonable, and had been negotiated in good faith. It concluded that the proposed terms and conditions provided adequate protections for employees, and that the balance of power between the parties was not unfairly skewed. The Commission approved the agreement, noting that it provided for a fair and efficient workplace while also recognising the rights and interests of both employers and employees.

The Fair Work Commission approved the John Deere Limited (Australian and New Zealand Distribution Centre) Enterprise Agreement 2024. The Commission's decision was based on its finding that the agreement provided fair and reasonable terms and conditions of employment, and that it had been negotiated in good faith. The Commission also noted that the agreement provided adequate protections for employees, and that it balanced the interests of both employers and employees. The approval of the agreement allows for the implementation of the proposed terms and conditions within the distribution centre, providing certainty for both parties.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established