DECISION

Fair Work Act 2009
s.185—Enterprise agreement

PACCAR Australia Pty Ltd t/a PACCAR Parts
(AG2020/2375)

PACCAR PARTS - ENTERPRISE AGREEMENT 2020

Manufacturing and associated industries
DEPUTY PRESIDENT MANSINI	MELBOURNE, 11 SEPTEMBER 2020

Application for approval of the PACCAR Parts - Enterprise Agreement 2020.

[1] PACCAR Parts has applied for approval of a single enterprise agreement known as the PACCAR Parts - Enterprise Agreement 2020 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] Since the application was made, the Commission raised concerns about whether the pre-approval requirements were met, the Agreement contravenes s.55 of the Act and passes the better off overall test. Further information was provided in relation to these concerns.

[3] Written undertakings were given in accordance with s.190 of the Act and are attached at Annexure A (Undertakings). The bargaining representative did not oppose the Undertakings. 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. Pursuant to s.201(3) of the Act, the Undertakings are taken to be terms of the Agreement.

[4] On the basis of the material contained in the application, further information provided on request of the Commission and the Undertakings, 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.

[5] 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 s.183 of the Act. In accordance with s.201(2), I note that the Agreement covers this organisation.

[6] The Agreement was approved on 11 September 2020 and, notwithstanding clause 1.7 and in accordance with s.54, will operate from 18 September 2020. The nominal expiry date of the Agreement is 31 July 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case before the Fair Work Commission involved PACCAR Australia Pty Ltd, trading as PACCAR Parts, and the Australian Manufacturing Workers' Union. The matter concerned an application for the approval of the PACCAR Parts Enterprise Agreement 2020. The primary dispute centred on whether the proposed agreement complied with the relevant legislative requirements and whether it appropriately balanced the interests of both the employer and the employees.

The legal issues the court had to address included whether the agreement met the formal requirements under the Fair Work Act 2009, such as the proper notification and consultation processes, and whether the terms and conditions of employment were fair and reasonable. Additionally, the court examined if the agreement appropriately covered the essential terms and conditions of employment and whether it provided adequate protections for employees.

The court found that the PACCAR Parts Enterprise Agreement 2020 was compliant with the statutory requirements. The agreement had been developed through appropriate negotiation processes, and the terms and conditions were deemed fair and reasonable. The court acknowledged that the agreement balanced the interests of the employer and employees, providing adequate protections and benefits. Consequently, the court approved the agreement, ensuring that it would now be binding between the parties as per the legislative framework.

The final orders of the court were to approve the PACCAR Parts Enterprise Agreement 2020, effective from the date of the decision. This approval meant that the terms and conditions set out in the agreement would govern the employment relationship between PACCAR Australia Pty Ltd and the union members, subject to the provisions of the Fair Work Act 2009.

PACCAR Australia Pty Ltd t/a PACCAR Parts

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established