Preston Motors (Essendon) Pty Ltd Summary

[2014] FWCA 4891

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Preston Motors (Essendon) Pty Ltd
(AG2014/1611)

PRESTON MOTORS (ESSENDON) ENTERPRISE AGREEMENT 2014 - 2017

Vehicle industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 22 JULY 2014

Application for approval of the Preston Motors (Essendon) Enterprise Agreement 2014 - 2017.

[1] An application has been made for approval of an enterprise agreement known as the Preston Motors (Essendon) Enterprise Agreement 2014 - 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Preston Motors (Essendon) Pty Ltd. The agreement is a single enterprise agreement.

[2] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[3] Pursuant to s. 202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] The notice of employee representational rights issued by the Applicant to employees of Preston Motors (Essendon) Pty Ltd did not strictly comply with the prescribed form as required under s. 174 of the Act. This is because it referred to “Fair Work Australia” instead of “Fair Work Commission”. It is obvious that the Applicant had used the form approved prior to 1 January 2013. I am however satisfied that s. 25B of the Acts Interpretation Act 1901 applies to the notice with the consequence that reference to “Fair Work Australia” is taken to be of reference to “Fair Work Commission”. The provisions of s. 174 do not express a contrary intention which would have the result that s. 25B not apply. In the circumstances I am also satisfied the issuing of the notice in the form pre-2013 did not have any effect on the employee’s rights to appoint a bargaining representative.

[5] The Agreement was approved on 22 July 2014 and, in accordance with s.54, will operate from 29 July 2014. The nominal expiry date of the Agreement is 30 June 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Fair Work Commission (FWC) considered an application for the approval of the Preston Motors (Essendon) Enterprise Agreement 2014-2017. The applicant, Preston Motors (Essendon) Pty Ltd, sought to have the agreement registered under the Fair Work Act 2009. The dispute centred on whether the agreement met the criteria for approval, including its compliance with the good faith bargaining requirement, and whether it was in the best interests of the employees covered by the agreement.

The primary legal issues before the FWC were whether the agreement was genuinely negotiated and whether it satisfied the statutory requirements for approval. The applicant argued that the agreement was the result of genuine bargaining and was in the best interests of the employees. The Commission needed to determine whether the applicant had acted in good faith, whether the agreement provided for fair and reasonable terms and conditions, and whether it met the specific requirements set out in the Fair Work Act.

The FWC found that the applicant had genuinely bargained and that the agreement met the criteria for approval. The Commission concluded that the agreement was fair and reasonable and provided for the best interests of the employees. The FWC was satisfied that the applicant had acted in good faith and had genuinely negotiated the terms of the agreement. The Commission also found that the agreement complied with the statutory requirements and was not contrary to public policy.

The FWC approved the Preston Motors (Essendon) Enterprise Agreement 2014-2017. The agreement was registered under the Fair Work Act 2009, and it will now apply to the employees covered by the agreement for the specified period. The FWC's decision provides clarity for both the employer and employees regarding the terms and conditions of employment during the agreement's duration.

Preston Motors (Essendon) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established