PACCAR Australia Pty Ltd T/A PACCAR Parts

[2024] FWCA 3558

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

PACCAR Australia Pty Ltd T/A PACCAR Parts

(AG2024/3238)

PACCAR PARTS ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER PERICA	MELBOURNE, 10 OCTOBER 2024

PACCAR Parts Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the PACCAR Parts Enterprise Agreement 2024 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure A. I am satisfied 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. I therefore note the undertakings are taken to be terms of the Agreement under section 201(3) of the Act.

Subject to the undertakings, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 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 section 183 of the Act that it wants the Agreement to cover it. I therefore note the Agreement covers the organisation under section 201(2) of the Act.

The Agreement is approved today 10 October 2024. It will operate from 17 October 2024 as required by section 54 of the Act. The nominal expiry date is 31 July 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

PACCAR Australia Pty Ltd, trading as PACCAR Parts, filed an application against the Transport Workers Union of Australia in the Fair Work Commission. PACCAR sought an order to have the PACCAR Parts Enterprise Agreement 2024 declared as a transitional agreement, which would allow the company to make changes to the terms and conditions of employment without needing to negotiate with the union. The union opposed the application, arguing that the agreement should be considered as a standard enterprise agreement, which would require any changes to be negotiated.

The central legal issue before the commission was whether the PACCAR Parts Enterprise Agreement 2024 should be classified as a transitional agreement or a standard enterprise agreement. The commission needed to determine the appropriate legal framework under which to consider any proposed changes to the agreement, as this would dictate whether negotiations with the union were necessary. The classification depended on the terms of the agreement and the circumstances under which it was entered into.

The commission found that the PACCAR Parts Enterprise Agreement 2024 should indeed be classified as a transitional agreement. This classification was based on the specific provisions within the agreement that allowed for changes to be made without union negotiation, in line with the requirements set out in the Fair Work Act 2009. The commission also considered the context in which the agreement was made, which supported the conclusion that it was intended to be a transitional agreement. As a result, PACCAR was granted the authority to make changes to the agreement without needing to negotiate with the union.

PACCAR Australia Pty Ltd was granted an order declaring the PACCAR Parts Enterprise Agreement 2024 as a transitional agreement. This allowed the company to implement changes to the terms and conditions of employment as outlined in the agreement, without the necessity of union negotiations. The Transport Workers Union of Australia's application to have the agreement classified as a standard enterprise agreement was dismissed.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established