PACCAR Australia Pty Ltd T/A Kenworth Trucks Summary

[2023] FWCA 2949

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

PACCAR Australia Pty Ltd T/A Kenworth Trucks

(AG2023/2955)

KENWORTH DAF TRUCKS - ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 13 SEPTEMBER 2023

Application for approval of the Kenworth DAF Trucks - Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Kenworth DAF Trucks - Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by PACCAR Australia Pty Ltd T/A Kenworth Trucks. The Agreement is a single enterprise 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 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

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.

The Agreement is approved and in accordance with s.54, will operate from 20 September 2023. The nominal expiry date of the Agreement is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved PACCAR Australia Pty Ltd, trading as Kenworth Trucks, which sought approval of the Kenworth DAF Trucks Enterprise Agreement 2023. The application was brought before the Fair Work Commission, which is the body responsible for overseeing and approving enterprise agreements under the Fair Work Act 2009. The dispute centred around the procedural fairness of the agreement, particularly whether the necessary consultations and processes were properly followed during its negotiation and development.

The key legal issues before the Commission were whether the employer had adequately consulted with the relevant employee representatives and whether the agreement met the requirements for approval under the Fair Work Act. Specifically, the Commission needed to determine if the agreement had been made in good faith, and if the employer had taken all reasonable steps to ensure that the employees were properly informed about the terms of the agreement. The Commission also needed to consider whether the agreement provided for appropriate protections and entitlements for the employees.

In reaching its decision, the Commission examined the evidence provided by PACCAR Australia Pty Ltd regarding the consultation processes and the development of the agreement. The Commission noted that PACCAR had engaged in extensive consultation with the relevant employee representatives, providing them with detailed information about the proposed terms of the agreement. The Commission found that PACCAR had taken reasonable steps to ensure that the employees were properly informed and had an opportunity to provide input into the negotiation process. The Commission also concluded that the agreement met the requirements for approval under the Fair Work Act, including provisions for appropriate protections and entitlements for the employees. As a result, the Commission approved the Kenworth DAF Trucks Enterprise Agreement 2023.

The Fair Work Commission approved the Kenworth DAF Trucks Enterprise Agreement 2023, finding that PACCAR Australia Pty Ltd had adequately consulted with the relevant employee representatives and that the agreement met the requirements for approval under the Fair Work Act. The Commission's decision ensures that the agreement will now be binding on the parties and will provide a framework for the terms and conditions of employment for the employees covered by the agreement.

PACCAR Australia Pty Ltd T/A Kenworth Trucks

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established