DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Johnson Controls Australia Pty Ltd T/A Johnson Controls Australia
(AG2020/1487)

JOHNSON CONTROLS PTY LIMITED ENTERPRISE AGREEMENT 2019-2023

Manufacturing and associated industries
DEPUTY PRESIDENT CLANCY	MELBOURNE, 16 JUNE 2020

Application for approval of the Johnson Controls Pty Limited Enterprise Agreement 2019-2023.

[1] An application has been made for the approval of an enterprise agreement known as the Johnson Controls Pty Limited Enterprise Agreement 2019-2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Johnson Controls Australia Pty Ltd T/A Johnson Controls Australia (the Applicant). The Agreement is a single enterprise agreement.

[2] The application is generally in order, however I note that it was not made within 14 days after the Agreement was made. Nevertheless, the Applicant has satisfied me that in all the circumstances, it is fair to extend that period to 27 May 2020, when the application was made. 1

[3] The Agreement does not cover all of the employees of the Applicant, however, taking into account the factors in s.186(3) and s.186(3A) I am satisfied that the group of employees was fairly chosen.

[4] On the basis of the material contained in the application, accompanying statutory declaration and email in response to my concerns dated 16 April 2020, I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[5] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The Agreement is approved and, in accordance with s.54, will operate from 23 June 2020. The nominal expiry date of the Agreement is 24 June 2023.

DEPUTY PRESIDENT

1 Section 185(3)(b) of the Fair Work Act 2009.

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CaseChat Overview and Summary

In the Fair Work Commission, Johnson Controls Australia Pty Ltd T/A Johnson Controls Australia applied for the approval of the Johnson Controls Pty Limited Enterprise Agreement 2019-2023. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute centred around the terms and conditions of employment within the enterprise agreement, specifically those relating to pay and classification of employees.

The primary legal issues before the court were whether the enterprise agreement met the requirements under the Fair Work Act 2009, and whether it provided for the fair treatment of employees, including adequate pay and classification. The court also considered whether the agreement contained any terms that were contrary to the principles of the Fair Work Act or that would unfairly disadvantage the employees.

The Fair Work Commission examined the provisions of the enterprise agreement against the statutory criteria set out in the Fair Work Act. The court considered the fairness of the agreement, taking into account the bargaining power of the parties, the need for a safety net of minimum entitlements, and the importance of flexibility in the workplace. The Commission found that the agreement, while generally fair, contained certain terms that required modification to ensure compliance with the statutory requirements and to protect the rights of the employees. The Commission made several amendments to the agreement to address these issues, and ultimately approved the agreement with those modifications.

In conclusion, the Fair Work Commission approved the Johnson Controls Pty Limited Enterprise Agreement 2019-2023, subject to the modifications made to ensure compliance with the Fair Work Act. The court's decision provided clarity on the terms of the agreement and ensured that the rights and entitlements of the employees were protected.

Johnson Controls Australia Pty Ltd T/A Johnson Controls Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established