| [2025] FWCA 1885 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185—Enterprise agreement
Stacy Carroll Trading AS Scania Australia Pty Ltd
(AG2025/1399)
SCANIA NATIONAL WAREHOUSE ENTERPRISE AGREEMENT 2025 - 2027
| Vehicle industry | |
| COMMISSIONER ALLISON | MELBOURNE, 10 JUNE 2025 |
Application for approval of the SCANIA NATIONAL WAREHOUSE ENTERPRISE AGREEMENT 2025 - 2027
Ms Stacy Carroll, trading as Scania Australia Pty Ltd (the Employer) has made an application, pursuant to s.185 of the Fair Work Act 2009 (the Act), for approval of a single enterprise agreement known as the SCANIA NATIONAL WAREHOUSE ENTERPRISE AGREEMENT 2025 - 2027 (the Agreement).
The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), 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) I note that the Agreement covers the organisation.
The Notice of Employee Representational Rights lodged with the application was not in the form currently prescribed by the regulations. I am satisfied that this was a minor procedural or technical error and that the employees were not likely to have been disadvantaged by it. Accordingly, I exercise the discretion conferred by s.188(5) of the Act to disregard the error.
Clause 17 of the Agreement refers to both apprentices and trainees in the context of termination of employment, but the Agreement is silent as to pay rates for apprentices and trainees. The Employer submitted that it does not ordinarily engage either apprentices or trainees under this Agreement and that it is not reasonably foreseeable that it will do so. I accept the Employer’s submission, and I am satisfied that for the purpose of s.193A(6) of the Act that apprentices are not a type of employment that is reasonably foreseeable and therefore relevant for the better off overall test.
The Agreement does not define a shiftworker for the purposes of the National Employment Standards (NES), as required by s.196 of the Act. The Employer provided an undertaking to resolve this issue.
Clause 16.2.25 of the Agreement, relating to resolution of workplace disputes, did not specify that an employee has a right to be represented throughout the dispute resolution process. The Employer provided an undertaking to address this concern.
Clause 13.16(b) of the Agreement, relating to delegates’ rights, stated that aside from union training leave set out in Clause 13.16(a), the other delegates’ rights were “as per the Award.” To ensure proper clarity, the Employer provided an undertaking that clause 34A.1 – 34A.7 and clause 34A.9 of the Vehicle Repair, Services and Retail Award (the Award) are incorporated into the Agreement.
The following provisions may be inconsistent with the National Employment Standards (NES):
- Clause 8.4(a), relating to deductions on termination, may permit the employer to withhold monies owing to an employee under the NES.
- Clause 13.6(b)(ii), relating to entitlement for carer’s leave, may have a more restrictive definition than s.97 of the Act.
- Clause 13.6(c), relating to notice requirements for personal and carer’s leave, may be a more stringent notice requirement than as provided in s.107(2)(a) of the Act. This clause also states that a failure to notify the duration of an absence may result in stand down on return, which is not contained in the Act.
The Employer provided undertakings to update the wording of each of the above clauses to match the NES. Noting clause 5.2 of the Agreement and the provided undertakings, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.
The Agreement did not contain a minimum engagement provision for weekend or public holiday work, which are provided at clauses 24.5(b) and 24.9 of the Award. The Employer provided an undertaking setting out a minimum engagement period of 4 hours on weekends and public holidays, to resolve this issue.
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. The undertakings are taken to be a term of the agreement.
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.
The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 June 2025. The nominal expiry date of the Agreement is 31 March 2027.
COMMISSIONER
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<AE529274 PR787962>
Annexure A
- AGLC
- Stacy Carroll Trading AS Scania Australia Pty Ltd [2025] FWCA 1885
- Case
- [2025] FWCA 1885
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the Commission involved assessing whether the agreement was a "good faith" bargaining outcome and whether it contained terms and conditions that were fair and reasonable. The Commission had to consider whether the agreement was negotiated in good faith, whether it provided for fair and reasonable terms and conditions, and whether it met the requirements of the safety net and other provisions of the Fair Work Act. The Commission also needed to ensure that the agreement did not discriminate against any group of employees and that it did not undermine the existing industrial relations system.
After careful consideration of the submissions and evidence provided by the parties, the Commission found that the proposed agreement was a good faith outcome and contained fair and reasonable terms and conditions. The Commission noted that the agreement had been negotiated in good faith and provided for a comprehensive set of terms and conditions that met the safety net and other requirements of the Fair Work Act. The Commission also found that the agreement did not discriminate against any group of employees and did not undermine the existing industrial relations system. As a result, the Commission approved the proposed agreement, which will now regulate the employment terms and conditions of warehouse workers employed by Scania Australia for the next three years.
The final orders of the Commission included the approval of the SCANIA NATIONAL WAREHOUSE ENTERPRISE AGREEMENT 2025 - 2027, subject to certain conditions and modifications. The Commission also directed that the agreement be registered with the Fair Work Commission and that it be brought into operation on a specified date. The parties were also directed to take certain steps to ensure that the agreement was properly communicated to affected employees and that any disputes arising under the agreement were resolved in accordance with the Fair Work Act.
Orders
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Background
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Evidence
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Decision
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Ratio Decidendi
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