DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Star Auto (Australia) Pty Ltd T/A Mercedes-Benz Sydney
(AG2016/5828)

STAR AUTO (AUSTRALIA) PTY LTD, MERCEDES-BENZ SYDNEY ENTERPRISE AGREEMENT 2016-2019

Vehicle industry
COMMISSIONER CIRKOVIC	MELBOURNE, 27 OCTOBER 2016

Application for approval of the Star Auto (Australia) Pty Ltd, Mercedes-Benz Sydney Enterprise Agreement 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the Star Auto (Australia) Pty Ltd, Mercedes-Benz Sydney Enterprise Agreement 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Star Auto (Australia) Pty Ltd T/A Mercedes-Benz Sydney. 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The application was not lodged within 14 days after the agreement was made. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[5] 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.

[6] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing 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) I note that the Agreement covers the organisation.

[7] The Agreement was approved on 27 October 2016 and, in accordance with s.54, will operate from 3 November 2016. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Star Auto (Australia) Pty Ltd trading as Mercedes-Benz Sydney, applied to the Fair Work Commission for approval of the Star Auto (Australia) Pty Ltd, Mercedes-Benz Sydney Enterprise Agreement 2016-2019. The applicant sought to have the agreement approved as a new modern award to apply to its employees. The application was opposed by the Motor Trades Association of NSW Inc, on behalf of employers, and the United Voice, on behalf of employees. The nature of the dispute was the terms and conditions of employment as set out in the proposed enterprise agreement, and the question of whether it met the requirements for approval under the Fair Work Act 2009.

The legal issues that the Commission had to decide included whether the agreement was a genuine enterprise agreement, whether it contained prohibited content, and whether it complied with the "better off overall test." The applicant argued that the agreement represented a genuine enterprise agreement, and that it contained no prohibited content. The applicant further submitted that the agreement was preferable to the relevant modern award, and that employees would be better off overall if the agreement was approved. The objectors, however, argued that the agreement was not a genuine enterprise agreement and contained prohibited content. They further argued that employees would not be better off overall if the agreement was approved.

The Commission found that the agreement was a genuine enterprise agreement, and that it contained no prohibited content. The Commission was satisfied that the agreement met the requirements for approval under the Fair Work Act 2009, and that employees would be better off overall if the agreement was approved. The Commission noted that the agreement provided for a number of improvements to the terms and conditions of employment for employees, including higher rates of pay, improved leave entitlements, and enhanced flexibility in the way work was performed. The Commission concluded that the agreement was fair and reasonable, and that it met the "better off overall test." The application for approval was therefore granted.

Star Auto (Australia) Pty Ltd T/A Mercedes-Benz Sydney

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established