DECISION

Fair Work Act 2009
s.185—Enterprise agreement

LSH Auto (Sydney) Pty Ltd T/A Mercedes-Benz Sydney
(AG2019/3471)

LSH AUTO (SYDNEY) PTY LTD, MERCEDES-BENZ SYDNEY ENTERPRISE AGREEMENT 2019-2022

Vehicle industry
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 15 OCTOBER 2019

Application for approval of the LSH Auto (Sydney) Pty Ltd, Mercedes-Benz Sydney Enterprise Agreement 2019-2022.

[1] An application has been made for approval of an enterprise agreement known as the LSH Auto (Sydney) Pty Ltd, Mercedes-Benz Sydney Enterprise Agreement 2019-2022 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings (Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

[3] The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

[4] Pursuant to subsection 190(3) of the Act, I accept the Undertakings. The Undertakings are taken to be a term of the Agreement.

[5] Subject to the Undertakings, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 as are relevant to this application for approval have been met.

[6] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union being a bargaining representative for the Agreement, has given notice under section 183 of the Act that it wants the Agreement to cover it. In accordance with subsection 201(2) of the Act, I note that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with section 54 of the Act, will operate from 22 October 2019. The nominal expiry date of the Agreement is 30 June 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the case of LSH Auto (Sydney) Pty Ltd trading as Mercedes-Benz Sydney, the application for approval of the Enterprise Agreement 2019-2022 was brought before the Fair Work Commission. The applicant, Mercedes-Benz Sydney, sought the approval of the agreement that had been negotiated between the employer and the employees’ representatives. The dispute centred on whether the agreement met the criteria for approval under the Fair Work Act 2009.

The primary legal issue was whether the Enterprise Agreement 2019-2022 complied with the procedural and substantive requirements set out in the Fair Work Act 2009. This involved assessing whether the agreement was made in good faith, whether it had been properly negotiated, and if it satisfied the "better off overall test." This test requires that employees be no worse off and at least some employees be better off financially under the new agreement compared to their previous conditions.

The Commission found that the agreement was made in good faith and was the product of proper negotiation processes. It was determined that the agreement satisfied the better off overall test as some employees would benefit financially. The Commission considered various factors, including the wage increases, the provision of additional leave, and the overall terms and conditions of employment. The Commission concluded that the agreement met the statutory requirements for approval, taking into account the specific circumstances of the enterprise and the bargaining positions of both parties.

As a result, the Fair Work Commission approved the LSH Auto (Sydney) Pty Ltd, Mercedes-Benz Sydney Enterprise Agreement 2019-2022. The approval ensures that the terms and conditions of employment are legally binding on the parties involved, providing a framework for the working relationship going forward.

LSH Auto (Sydney) Pty Ltd T/A Mercedes-Benz Sydney

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established