Mercedes-Benz Australia/Pacific Pty Ltd

[2013] FWCA 2265

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mercedes-Benz Australia/Pacific Pty Ltd
(AG2013/782)

MERCEDES-BENZ AUSTRALIA/PACIFIC PTY LTD, MERCEDES-BENZ SYDNEY ENTERPRISE AGREEMENT 2012

Vehicle industry
COMMISSIONER RYAN	MELBOURNE, 12 APRIL 2013

Application for approval of the Mercedes-Benz Australia/Pacific Pty Ltd, Mercedes-Benz Sydney Enterprise Agreement 2012 .

[1] An application has been made for approval of an enterprise agreement known as the Mercedes-Benz Australia/Pacific Pty Ltd, Mercedes-Benz Sydney Enterprise Agreement 2012 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by Mercedes-Benz Australia/Pacific Pty Ltd. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] An undertaking has been given in relation to compassionate leave of the Agreement and this undertaking has become a term of the Agreement in accordance with s.191(2) of the Act and is appended at Appendix A.

[4] The “Automotive, Food, 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. As required by s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54(1), will operate from 19 April 2013. The nominal expiry date of the Agreement is 30 June 2015.

COMMISSIONER

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APPENDIX A

CaseChat Overview and Summary

Mercedes-Benz Australia/Pacific Pty Ltd applied to the Fair Work Commission for the approval of the Mercedes-Benz Sydney Enterprise Agreement 2012. The applicant sought to have the agreement approved as a safety-net agreement under the Fair Work Act 2009. The dispute arose from disagreements between the applicant and the Automotive, Metals and Engineering Employees Union regarding the terms of the agreement. The union raised concerns about the proposed changes to the agreement, including changes to working hours, shift patterns, and overtime provisions.

The central legal issue before the Commission was whether the proposed changes in the agreement were consistent with the safety-net provisions of the Fair Work Act. The Commission had to consider whether the proposed changes provided for minimum terms and conditions of employment that were no less favourable than the applicable safety-net award. The Commission also had to determine whether the changes were consistent with the overall purpose of the safety-net provisions, which was to ensure that employees received a minimum level of protection in the absence of an enterprise agreement.

After considering the submissions of both parties, the Commission found that the proposed changes in the agreement were consistent with the safety-net provisions of the Fair Work Act. The Commission found that the changes provided for minimum terms and conditions of employment that were no less favourable than the applicable safety-net award. The Commission also found that the changes were consistent with the overall purpose of the safety-net provisions, which was to ensure that employees received a minimum level of protection in the absence of an enterprise agreement. Accordingly, the Commission approved the agreement as a safety-net agreement. The final orders included the approval of the agreement and the setting aside of any previous enterprise agreements that were inconsistent with the approved agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established