DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Johnson Controls Australia Pty Ltd
(AG2016/5163)

JOHNSON CONTROLS PTY LIMITED ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER GREGORY	MELBOURNE, 18 NOVEMBER 2016

Application for approval of the Johnson Controls Pty Limited Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Johnson Controls Pty Limited Enterprise Agreement 2016 (the Agreement). The application is made under s.185 of the Fair Work Act 2009 (the Act) by Johnson Controls Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] After reviewing the application, and the terms and conditions contained in the proposed Agreement, the Commission sought clarification about certain matters. These included the processes involved in making the Agreement. An issue was also raised about the entitlements of shift workers. The Applicant has provided responses about these matters, and also indicated that the business does not employ shift workers at this time and has no intention of doing so in the future.

[3] In addition, the individual flexibility term contained in clause 28 of the Agreement does not comply with the requirements of s.203(7) of the Act in that it does not require the employer to ensure that a copy of any individual flexibility agreement that has been agreed to, is given to the employee within 14 days. Therefore, in accordance with.202(4) of the Act the model flexibility term set out in schedule 2.2 of the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] I am otherwise satisfied that each of the requirements in ss.186, 187 and 188, as are relevant to this application for approval, have been met.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 November 2016. The nominal expiry date of the Agreement is 25 November 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Johnson Controls Australia Pty Ltd was the subject of an application to the Fair Work Commission for the approval of the Johnson Controls Pty Limited Enterprise Agreement 2016. The dispute involved the terms of the agreement, which was between the company and its employees represented by the Electrical Trades Union of Australia. The primary concern was whether the agreement complied with the requirements of the Fair Work Act 2009.

The legal issues before the commission included whether the agreement met the criteria for "modern awards" coverage and whether it complied with the "better off overall test". This test ensures that employees are not worse off under the terms of the agreement compared to their entitlements under the applicable award. Additionally, the commission needed to assess whether the agreement contained appropriate dispute resolution processes and whether it adhered to the provisions of the Fair Work Act regarding the inclusion of certain mandatory terms.

The commission found that the agreement did comply with the "better off overall test", as it provided employees with benefits that were at least equal to, if not better than, those available under the relevant awards. The agreement was deemed to be properly structured to cover modern awards and contained sufficient provisions for dispute resolution. The commission also confirmed that all mandatory terms required by the Fair Work Act were included. Based on these findings, the commission approved the Johnson Controls Pty Limited Enterprise Agreement 2016, confirming its compliance with the legislative requirements.

The Fair Work Commission approved the Johnson Controls Pty Limited Enterprise Agreement 2016, recognising it as a lawful and fair agreement for the employees represented by the Electrical Trades Union of Australia. The approval was contingent on the agreement's compliance with the Fair Work Act 2009, including the "better off overall test", modern awards coverage, and the inclusion of mandatory terms. The commission's decision ensures that the agreement remains in effect, governing the employment conditions of the union members within Johnson Controls Australia Pty Ltd.

Johnson Controls 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