DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Meritor Heavy Vehicle Systems Australia Limited
(AG2018/445)

MERITOR HEAVY VEHICLE SYSTEMS (SUNSHINE) AGREEMENT 2017

Manufacturing and associated industries
COMMISSIONER GREGORY	MELBOURNE, 8 JUNE 2018

Application for approval of the Meritor Heavy Vehicle Systems (Sunshine) Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Meritor Heavy Vehicle Systems (Sunshine) Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Meritor Heavy Vehicle Systems Australia Limited. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[3] 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.

[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. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 June 2018. The nominal expiry date of the Agreement is 30 September 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The Fair Work Commission considered an application by Meritor Heavy Vehicle Systems Australia Limited for the approval of the Meritor Heavy Vehicle Systems (Sunshine) Agreement 2017. The application was brought under the Fair Work Act 2009, which provides for the registration of enterprise agreements that offer improved terms and conditions for employees. The applicants sought to register an enterprise agreement that would apply to their employees in the Sunshine facility, aiming to improve productivity and operational efficiency.

The legal issues before the Commission involved whether the agreement met the requirements for approval under the Fair Work Act, specifically whether it provided for minimum terms and conditions, and whether it was made in good faith and not coerced. The Commission had to consider whether the agreement was fairly negotiated and whether it provided for appropriate minimum terms and conditions in line with the provisions of the Act.

In delivering its decision, the Commission found that the agreement contained terms that did not meet the minimum standards prescribed by the Fair Work Act, particularly in relation to leave entitlements and redundancy payments. The Commission noted that the agreement did not provide for the minimum leave entitlements as required by the Act and that certain provisions regarding redundancy payments were also deficient. Furthermore, the Commission was satisfied that the agreement was made in good faith and was not the result of any unfair labour practice. Consequently, the Commission approved the agreement with certain modifications to ensure compliance with the minimum terms and conditions.

The Fair Work Commission ordered that the Meritor Heavy Vehicle Systems (Sunshine) Agreement 2017 be registered with modifications to ensure it met the minimum terms and conditions as prescribed by the Fair Work Act. The modifications included the incorporation of specific leave entitlements and adjustments to redundancy payment provisions to align with the statutory requirements. The Commission's decision thus ensured that the agreement would offer fair and improved terms for employees while complying with legislative standards.

Meritor Heavy Vehicle Systems Australia Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established