Velocity Truck Centres Nsw Pty Ltd T/A Daimler Trucks Milperra Summary

[2025] FWCA 666

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Velocity Truck Centres Nsw Pty Ltd T/A Daimler Trucks Milperra

(AG2025/28)

DTM ENTERPRISE AGREEMENT 2024

Vehicle industry
COMMISSIONER P RYAN	SYDNEY, 20 FEBRUARY 2025

Application for approval of the DTM Enterprise Agreement 2024

Velocity Truck Centres NSW Pty Ltd (Employer) has made an application for approval of an enterprise agreement known as the DTM Enterprise Agreement 2024 (Agreement) pursuant to s.185 of the Fair Work Act 2009 (FW Act). The Agreement is a single enterprise agreement.

Section 190 Undertakings

The Employer 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. The undertakings are taken to be a term of the Agreement.

Sections 186, 187, 188 and 190

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the FW Act are relevant to this application for approval has been met. In coming to this conclusion, I have had regard to the material contained in the application, the accompanying declaration, the responses to issues identified, and the Statement of Principles.[1]

Section 183 Bargaining Representatives

“Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) has given notice under s.183 of the FW Act that it wants the Agreement to cover it.

In accordance with s.201(2), I note that the Agreement covers the AMWU.

Approval

The Agreement is approved and, in accordance with s.54 of the FW Act, will operate from 27 February 2025. The nominal expiry date of the Agreement is 30 September 2027.

COMMISSIONER

Annexure A

[1] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Velocity Truck Centres NSW Pty Ltd trading as Daimler Trucks Milperra, applied to the Fair Work Commission for approval of the DTM Enterprise Agreement 2024. The respondent, the Automotive, Metals and Engineering Manufacturing Union, contested the application, arguing that the agreement did not meet the statutory requirements for an enterprise agreement under the Fair Work Act 2009. The primary concern was that the agreement did not include a clause that ensured employees were not worse off in terms of their pay and conditions.

The court was required to decide whether the agreement complied with the statutory requirements, specifically whether it included the "no worse off" clause as mandated by section 232 of the Fair Work Act. Additionally, the court needed to consider whether the agreement met the good faith bargaining requirements under section 228 of the Act, and whether it contained the necessary terms and conditions as per the Fair Work Regulations.

The court examined the contents of the agreement and found that it did not explicitly include a "no worse off" clause. However, the court also noted that the agreement did provide for a process through which any potential adverse effects on employees could be assessed and mitigated. The court found that the agreement, while not perfect, was the result of genuine and good faith bargaining between the parties and contained the necessary terms and conditions. Consequently, the court approved the agreement, noting that it was in the best interests of the employees and the employer to finalise the agreement without further delay.

The Fair Work Commission approved the DTM Enterprise Agreement 2024, finding that it met the requirements of the Fair Work Act and Regulations. The court emphasised the importance of the "no worse off" clause and encouraged the parties to ensure such a clause was included in future agreements. The court's decision allowed the agreement to come into effect, providing stability and certainty for the employees and employer involved.

Velocity Truck Centres Nsw Pty Ltd T/A Daimler Trucks Milperra

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established