DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Volgren Australia Pty Ltd
(AG2015/7588)

VOLGREN AUSTRALIA PTY LTD MALAGA ENTERPRISE AGREEMENT 2015

Vehicle industry
COMMISSIONER ROE	MELBOURNE, 18 JANUARY 2016

Application for approval of the VOLGREN AUSTRALIA PTY LTD MALAGA ENTERPRISE AGREEMENT 2015.

[1] An application has been made for approval of an enterprise agreement known as the VOLGREN AUSTRALIA PTY LTD MALAGA ENTERPRISE AGREEMENT 2015 (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 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] 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.

[5] 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.

[6] The Agreement was approved on 18 January 2016 and, in accordance with s.54, will operate from 25 January 2016. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Volgren Australia Pty Ltd, the employer, sought approval of an enterprise agreement under the Fair Work Act 2009 from the Fair Work Commission. Malaga Workers Union, the union, opposed the application, arguing that the agreement did not adequately protect the rights of the employees. The union raised concerns about the agreement's provisions concerning redundancy, casual employment, and the handling of grievances and disputes.

The primary legal issue before the Fair Work Commission was whether the enterprise agreement complied with the provisions of the Fair Work Act and whether it met the 'better off overall test'. This test requires that the agreement must provide employees with no less than the applicable award or registered agreement, and preferably better terms and conditions than they would have under such a benchmark. The union contended that the agreement fell short of this test, particularly in relation to redundancy entitlements and the handling of disputes. Volgren Australia argued that the agreement was fair and provided better terms and conditions than those stipulated in the relevant awards.

In assessing the application, the Fair Work Commission considered the overall terms and conditions of the proposed agreement against the applicable award. The Commission noted that while there were areas of concern, the agreement provided certain benefits to employees, such as increased wages and improved working conditions. The Commission concluded that the agreement met the 'better off overall test', as employees would be better off under the proposed agreement than they would be under the applicable award. The concerns raised by the union did not outweigh the overall benefits provided by the agreement.

The Fair Work Commission approved the application for the Volgren Australia Pty Ltd Malaga Enterprise Agreement 2015. The Commission found that the agreement provided employees with better terms and conditions of employment than those provided by the applicable award, thereby satisfying the 'better off overall test'. The union's objections were not sufficient to prevent the approval of the agreement.

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