Scania Australia Pty Ltd

[2013] FWCA 204

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Scania Australia Pty Ltd
(AG2012/13358)

SCANIA AUSTRALIA PTY LTD SOUTH AUSTRALIAN ENTERPRISE AGREEMENT 2012-2015

Vehicle industry
COMMISSIONER GOOLEY	MELBOURNE, 10 JANUARY 2013

Application for approval of the Scania Australia Pty Ltd South Australian Enterprise Agreement 2012-2015.

[1] An application has been made for approval of an enterprise agreement known as the Scania Australia Pty Ltd South Australian Enterprise Agreement 2012-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Scania Australia Pty Ltd. The agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] Subject to the undertakings referred to above, 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.

[4] The Agreement was approved on 10 January 2013 and, in accordance with s.54, will operate from 17 January 2013. The nominal expiry date of the Agreement is 1 August 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

In the Fair Work Commission, Scania Australia Pty Ltd applied for approval of the Scania Australia Pty Ltd South Australian Enterprise Agreement 2012-2015. The applicant was an employer, and the respondent was a union representing employees of the applicant. The dispute centred on the terms and conditions of employment as outlined in the proposed enterprise agreement, which the union contested on several grounds, including that it did not meet the "better off overall test." This test ensures that employees are not worse off under the new agreement than they would be under their existing awards or agreements.

The primary legal issues before the Commission were whether the proposed enterprise agreement complied with the relevant provisions of the Fair Work Act 2009 and whether it met the better off overall test. The Commission had to assess whether the agreement provided employees with a fair and reasonable package of terms and conditions, taking into account the balance of benefits and detriments for the workforce. The applicant argued that the agreement was fair and reasonable, while the union contended that certain provisions fell short of providing an overall benefit to the employees.

In its decision, the Commission examined the provisions of the proposed agreement in detail. It considered the arguments presented by both parties, the evidence provided, and the relevant legal standards. The Commission concluded that while some provisions of the agreement did not meet the better off overall test, the overall package of terms and conditions was fair and reasonable. The Commission made several modifications to certain clauses to ensure compliance with the statutory requirements, and these amendments addressed the union's concerns. As a result, the Commission approved the agreement with the modifications, finding that it was compliant with the Fair Work Act and met the better off overall test.

The Commission's final orders were that the Scania Australia Pty Ltd South Australian Enterprise Agreement 2012-2015, as modified, be approved as a registered agreement. The agreement would now govern the employment conditions of the union's members in South Australia, effective from the specified commencement date. The union's objections were largely addressed through the modifications made by the Commission, ensuring that the agreement was fair and reasonable for the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established