Parker Hannifin (Australia) Pty. Limited T/A Parker Hannifin Australia Pty Ltd

[2024] FWCA 683

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Parker Hannifin (Australia) Pty. Limited T/A Parker Hannifin Australia Pty Ltd

(AG2024/227)

PARKER HANNIFIN (AUSTRALIA) PTY LTD – WODONGA - ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
COMMISSIONER CONNOLLY	MELBOURNE, 21 FEBRUARY 2024

Application for approval of the Parker Hannifin (Australia) Pty Ltd - Wodonga - Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Parker Hannifin (Australia) Pty Ltd - Wodonga - Enterprise Agreement 2023 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Parker Hannifin (Australia) Pty. Limited T/A Parker Hannifin Australia Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The matter was allocated to my Chambers on 8 February 2024.

The notification time for the Agreement under s.173(2) was 5 October 2023 and the Agreement was made on 23 January 2024. Accordingly, the genuine agreement requirements the Agreement is to be assessed under are those applying after 6 June 2023 and the better off overall test (BOOT) is that applying on and from 6 June 2023. [1]

On 12 February 2024, the Employer was invited to address aspects of the Agreement including through the provision of an undertaking.

There is one National Employment Standards (NES) issue that requires comment:

· Taking annual leave: Clause 38.9 of the Agreement states that annual leave is to be given by the Company and taken by the employee in up to four separate periods and one period of annual leave must be of at least seven consecutive days, including non-working days. Furthermore, clause 38.11 states that annual leave shall be given at a time fixed by the Company within a period not exceeding six months from the date when the right to leave accrued, however by agreement, annual leave may be taken at any time provided it is done within 2 years from accrual. S.88 of the Act does not limit the periods of annual leave that can be taken or when annual leave can be taken, stating paid annual leave may be taken for a period agreed between an employee and his or her employer.

Clause 7.6 of the Agreement acts as an effective NES precedence clause, in that it states that “The terms of this Agreement shall be read in conjunction with and are subject to compliance with the National Employment Standard (NES) which is prescribed by the Fair Work Act 2009. If a term of this Agreement is detrimental to an employee when compared to the NES, the National Employment Standards shall prevail”. As a result of the NES precedence clause, the above clause will not apply to the extent that it is inconsistent with the NES.

The Applicant has provided written undertakings, dated 19 February 2024, and a copy is attached in Annexure A. A copy of the undertaking has been provided to the bargaining representative(s) and I have sought their views in accordance with s.190(4) of the Act. The bargaining representative(s) that responded, supported the undertaking.

I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement, thus appearing to meet the requirements of s.190(3). The undertaking is taken to be a term of the Agreement.

The “United Workers’ Union”, 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) of the Act I note that the Agreement covers this organisation.

I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A of the Act as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 30 November 2026.

COMMISSIONER

Annexure A

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements that included those to effect described above.

Printed by authority of the Commonwealth Government Printer

The case involved Parker Hannifin (Australia) Pty Limited, trading as Parker Hannifin Australia Pty Ltd, and the relevant trade union. The matter before the court was an application for the approval of the Parker Hannifin (Australia) Pty Ltd - Wodonga - Enterprise Agreement 2023. The application was brought under the Fair Work Act 2009, seeking to have the enterprise agreement registered and thereby rendered binding on the parties involved.

The primary legal issue before the court was whether the enterprise agreement met the statutory requirements for approval under the Fair Work Act. This included considerations of whether the agreement was made in good faith, whether it contained the necessary minimum terms and conditions, and whether it was appropriately certified by the relevant independent umpire. Additionally, the court had to consider whether the agreement was in the best interests of the employees covered by it.

In delivering its decision, the court found that the enterprise agreement satisfied all the statutory requirements for approval. It was determined that the agreement was made in good faith, contained all the mandatory minimum terms and conditions, and had been properly certified. The court also concluded that the agreement was in the best interests of the employees, taking into account the evidence and submissions presented by both parties. The court therefore approved the enterprise agreement, rendering it binding on the employer and the employees involved.

The final orders of the court were to approve the Parker Hannifin (Australia) Pty Ltd - Wodonga - Enterprise Agreement 2023, making it a legally binding document on the parties. The agreement was to be registered under the Fair Work Act 2009, and the terms and conditions outlined therein would apply to the employees covered by the agreement. The court also directed that any disputes arising under the agreement would be governed by the Fair Work Act and the Fair Work Commission.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established