Royal Automobile Association of South Australia Incorporated T/A RAA

[2024] FWCA 3206

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Royal Automobile Association of South Australia Incorporated T/A RAA

(AG2024/3113)

Vehicle industry
COMMISSIONER THORNTON	ADELAIDE, 6 SEPTEMBER 2024

Application for approval of the RAA Automotive and Technical Grades Agreement 2024

An application has been made for approval of an enterprise agreement known as the RAA Automotive and Technical Grades Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Royal Automobile Association of South Australia Incorporated T/A RAA (the Applicant). The Agreement is a single enterprise agreement.

The Applicant has provided written 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.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187, 188 and 190 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

Clause 18.1(b) dealing with withholding of monies if an employee fails to give required notice, may be inconsistent with the National Employment Standards (NES). Noting clause 8.39(b) of the Agreement, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) lodged a Form F18 statutory declaration giving 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 the Agreement covers the AMWU.

The Agreement is approved and will operate in accordance with s.54 of the Act from 13 September 2024. The nominal expiry date of the Agreement is 13 September 2027.

COMMISSIONER

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ANNEXURE A

CaseChat Overview and Summary

The Fair Work Commission heard an application from the Royal Automobile Association of South Australia, trading as RAA, for the approval of the RAA Automotive and Technical Grades Agreement 2024, under section 185 of the Fair Work Act 2009. The agreement is a single enterprise agreement that the applicant seeks to implement. The Australian Manufacturing Workers’ Union (AMWU), also known as the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, lodged a notice under section 183 of the Act, indicating that it wants the agreement to cover its members. The central legal issues before the Commission were whether the proposed agreement complied with the requirements of the Fair Work Act and whether it adequately protected the entitlements of employees, particularly in light of any inconsistencies with the National Employment Standards (NES).

The Commission found that the applicant had provided written undertakings that would ensure no financial detriment to employees and no substantial changes to the agreement. These undertakings were deemed to be a term of the agreement. While there was a potential inconsistency in clause 18.1(b) of the agreement, which deals with the withholding of monies if an employee fails to give required notice, the Commission was satisfied that the more beneficial entitlements of the NES would prevail where there was a conflict, as noted in clause 8.39(b) of the agreement. Additionally, the Commission noted that the agreement covers the AMWU in accordance with section 201(2) of the Act. Consequently, the Commission concluded that all relevant requirements of sections 186, 187, 188, and 190 of the Act were met, subject to the undertakings made by the applicant.

In light of the above, the Fair Work Commission approved the RAA Automotive and Technical Grades Agreement 2024. The agreement will come into effect on 13 September 2024, in accordance with section 54 of the Act. The nominal expiry date of the agreement is 13 September 2027. This decision ensures that the agreement will operate legally and protect the rights of employees while allowing the parties to implement the terms they have negotiated.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established