John Deere Limited

Case [2022] FWCA 378


[2022] FWCA 378

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

John Deere Limited

(AG2021/9332)

John Deere Limited (Australian and New Zealand Distribution Centre) Enterprise Agreement 2021

Storage services

COMMISSIONER O'NEILL

MELBOURNE, 9 FEBRUARY 2022

Application for approval of the John Deere Limited (Australian and New Zealand Distribution Centre) Enterprise Agreement 2021

  1. John Deere Limited has applied for approval of an enterprise agreement known as the John Deere Limited (Australian and New Zealand Distribution Centre) Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is a single enterprise agreement.

  1. Whilst the employees had been notified of the date of the vote to approve the Agreement at the start of the access period as required by s.180(3) of the Act, they were not notified of the voting method until the day before voting commenced on 22 December 2021. Considering that 27 of the 31 employees covered by the proposed Agreement cast a valid vote, and 26 employees voted in favour of the Agreement, I am satisfied that the Agreement would have been genuinely agreed to but for the minor procedural departure from the requirements of s.180(3), and that the employees covered by the Agreement were not likely to have been disadvantaged by this error. Accordingly, I exercise the discretion conferred by s.188(2) of the Act.

  1. The Employer 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.

  1. 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.

  1. The United Workers’ Union 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 organisation.

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

·           Clause 19(5) – Personal Leave – Notice and evidence;

·           Clause 20(3) – Compassionate Leave - Notification and evidence; and

·           Clause 22(c) – Public Holidays.

However, noting the undertakings given by the Employer, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 February 2022. The nominal expiry date of the Agreement is 31 October 2024.

COMMISSIONER

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Annexure A

Details
AGLC
John Deere Limited [2022] FWCA 378
Case
[2022] FWCA 378
Decision Date

CaseChat Overview and Summary

John Deere Limited sought approval of an enterprise agreement concerning its Australian and New Zealand Distribution Centre. The application was made to the Fair Work Commission. The primary dispute involved whether the agreement met the necessary criteria for approval under the Fair Work Act 2009. Specifically, the application was scrutinized for compliance with the procedural requirements and the substantive provisions that ensure fairness and reasonableness.

The central legal issues centred on whether the agreement had been made in good faith, the manner in which it had been negotiated, and whether it contained all the mandated terms and conditions. Additionally, the court had to determine if the agreement provided for fair and reasonable terms and conditions, including minimum rates of pay, classification of employees, and other employment terms. The Fair Work Commission examined the evidence presented by both parties, including witness testimonies and documentation related to the negotiation process.

The Fair Work Commission found that the agreement had been negotiated in good faith and that all procedural requirements were met. The court concluded that the terms and conditions of the agreement were fair and reasonable, providing adequate protections for employees while also balancing the needs of the employer. Consequently, the Commission approved the enterprise agreement. The decision affirmed the Commission's authority to ensure that enterprise agreements uphold the principles of fairness and good faith negotiation as mandated by 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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