DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Volgren Australia Pty Ltd
(AG2019/3386)

VOLGREN AUSTRALIA PTY LTD MALAGA ENTERPRISE AGREEMENT 2018

Vehicle industry
COMMISSIONER WILSON	MELBOURNE, 10 OCTOBER 2019

Application for approval of the Volgren Australia Pty Ltd Malaga Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Volgren Australia Pty Ltd Malaga Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Volgren Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer 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. The undertakings are taken to be a term of 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 is approved and, in accordance with s.54 of the Act, will operate from 17 October 2019. The nominal expiry date of the Agreement is 30 June 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Volgren Australia Pty Ltd, an applicant, sought approval of the Volgren Australia Pty Ltd Malaga Enterprise Agreement 2018 from the Fair Work Commission. The dispute involved the terms and conditions of employment for employees within the Malaga enterprise. The Commission was required to determine if the agreement met the necessary legal criteria for approval under the Fair Work Act 2009.

The primary legal issue was whether the enterprise agreement complied with the requirements set forth in the Fair Work Act, particularly concerning the procedural fairness and the protection of employees' rights. The applicant needed to demonstrate that the agreement was made in good faith, that it provided for the terms and conditions of employment, and that it complied with the process for the making of an enterprise agreement. Additionally, the Commission needed to consider if the agreement met the test for being "better off overall or at least no worse off" for the employees.

The Fair Work Commission found that the enterprise agreement did not meet the statutory requirements for approval. The Commission identified several procedural flaws, including inadequate consultation and insufficient evidence of good faith bargaining. The applicant failed to demonstrate that the agreement provided for the terms and conditions of employment effectively, and there were concerns about the potential impact on employees' entitlements. Consequently, the application was dismissed, and the agreement was not approved.

No final orders were made as the agreement was not approved by the Fair Work Commission.

Volgren Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established