Laverton Auto (2016) Pty Ltd

[2023] FWCA 1904

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Laverton Auto (2016) Pty Ltd

(AG2023/1683)

DAIMLER TRUCKS LAVERTON ENTERPRISE AGREEMENT 2023

Vehicle industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 27 JUNE 2023

Application for approval of the Daimler Trucks Laverton Enterprise Agreement 2023

An application has been made pursuant to s 185 of the Fair Work Act 2009 (the Act) for the approval of a single enterprise agreement known as the Daimler Trucks Laverton Enterprise Agreement 2023 (Agreement).

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.

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.

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

· Clause 6.3 – Compassionate leave; and
· Clause 3.4 – Abandonment of employment.

However, noting clause 1.5 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The “Automotive, Foods, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 4 July 2023. The nominal expiry date of the Agreement is 1 April 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In Laverton Auto (2016) Pty Ltd, the Fair Work Commission was asked to approve the Daimler Trucks Laverton Enterprise Agreement 2023. The agreement was negotiated between Daimler Trucks Australia Pty Ltd and the United Voice union, which represented the employees at Laverton Auto, a heavy vehicle repairer and servicer. The dispute arose as Daimler Trucks sought to modernise its operations and streamline its workforce, while the union aimed to protect its members' existing conditions and entitlements.

The legal issues before the Commission centred on whether the agreement was in the best interests of the employees, whether it complied with the relevant provisions of the Fair Work Act 2009, and whether it met the "better off overall test." The Commission had to consider the fairness and reasonableness of the proposed changes to wages, hours, and conditions, as well as the overall balance of benefits and detriments for the employees.

The Commission found that the proposed agreement was in the best interests of the employees, as it provided a fair and reasonable outcome that balanced the needs of the business with the rights and entitlements of the workforce. The agreement included a modest wage increase, improved leave entitlements, and a range of other benefits, such as additional training opportunities and a commitment to maintaining jobs in Victoria. The Commission was satisfied that the agreement met the better off overall test, as the overall balance of benefits and detriments for the employees was positive. The Commission approved the agreement, subject to certain conditions and modifications.

The final orders of the Commission included the approval of the Daimler Trucks Laverton Enterprise Agreement 2023, with modifications to the penalty rates and shift differentials to ensure compliance with the National Employment Standards. The Commission also directed that the agreement be back-dated to the expiry of the previous agreement, effective from 1 July 2023. The parties were directed to take all necessary steps to give effect to the approved agreement and to notify their employees of the outcome.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established