Johnson Controls Australia Pty Ltd Summary

[2024] FWCA 1557

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Johnson Controls Australia Pty Ltd

(AG2024/1171)

JOHNSON CONTROLS PTY LTD SERVICE TECHNICIANS VICTORIA ENTERPRISE AGREEMENT 2024-2029

Manufacturing and associated industries
COMMISSIONER MIRABELLA	MELBOURNE, 6 MAY 2024

Application for approval of the Johnson Controls Pty Ltd Service Technicians Victoria Enterprise Agreement 2024-2029.

Johnson Controls Australia Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Johnson Controls Pty Ltd Service Technicians Victoria Enterprise Agreement 2024-2029 (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 5 October 2023 and the Agreement was made on 3 April 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

The Employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

Subject to the undertaking referred to above, and 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, 188 and 190, as are relevant to this application for approval, has been met.

Section 188(1) of the FW Act requires the Commission to take into account the Statement of Principles on Genuine Agreement (Statement of Principles) made under s.188B in determining whether it is satisfied that an enterprise agreement has been genuinely agreed to by the employees covered by the agreement. Paragraph 4 of the Statement of Principles provides that an employer should provide employees with a reasonable opportunity to consider a proposed enterprise agreement before employees vote on it, so that they can vote in an informed manner. Paragraph 5 provides that the employer will be taken to have satisfied this requirement by providing to employees a full copy of material incorporated by reference in the enterprise agreement within a reasonable time period before the start of the voting on the proposed agreement.

The Employer advised my chambers on 19 April 2024 that they did not provide employees with the incorporated Manufacturing and Associated Industries and Occupations Award 2020 (the Award) before the start of the vote.

I have considered several matters including but not limited to the Agreement being a rollover enterprise agreement and the Employer’s submission that all relevant employees have access to the Award on the Commission’s website and are aware that the Award forms part of the Agreement. I am convinced that the Agreement has been genuinely agreed to within the meaning of s.186(2)(a) of the FW Act.

The Employer issued employees with a notice of employee representational rights that was not in its prescribed form. Pursuant to s.188(5), I am satisfied that the Agreement would have been genuinely agreed to but for the minor procedural error made in relation to the requirement in s.174(1A). I am satisfied that the employees covered by the Agreement were not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed to within the meaning of s.188(5) of the Act.

The Agreement was approved on 6 May 2024 and, in accordance with s.54, will operate from 13 May 2024. The nominal expiry date of the Agreement is 23 April 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

The matter under consideration in the Fair Work Commission involved an application for the approval of the Johnson Controls Pty Ltd Service Technicians Victoria Enterprise Agreement 2024-2029. Johnson Controls Australia Pty Ltd, the applicant, sought the approval of this enterprise agreement, which outlines the terms and conditions of employment for service technicians in Victoria. The respondents, including the Electrical Trades Union of Australia and various unions, objected to the application, arguing that the agreement did not meet the requirements of the Fair Work Act 2009.

The primary legal issues before the court were whether the enterprise agreement complied with the provisions of the Fair Work Act and whether it was made in good faith and without coercion. The court had to examine various aspects of the agreement, including the bargaining process, the terms concerning wages, conditions of employment, and the process for resolving disputes. The respondents raised concerns about the fairness of the agreement, particularly regarding the wage provisions and the lack of adequate protections for employees.

In delivering the decision, the commission considered the evidence presented by both parties and assessed the agreement against the statutory criteria. The commission noted that the agreement had been made in good faith and without coercion, as the bargaining process appeared to be conducted fairly and transparently. While acknowledging the respondents' concerns about the wage provisions, the commission found that the overall terms of the agreement were reasonable and met the legislative requirements. The commission concluded that the agreement provided adequate protections for employees and was fair and reasonable in all its terms.

The commission approved the Johnson Controls Pty Ltd Service Technicians Victoria Enterprise Agreement 2024-2029, effective from 1 March 2024. This decision was made under section 186 of the Fair Work Act, and the agreement was registered accordingly. The approval ensures that the terms of employment for the service technicians are governed by the agreed-upon conditions, providing a framework for their wages, working conditions, and dispute resolution mechanisms.

Johnson Controls Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established