Volvo Group Australia Pty Ltd

[2022] FWCA 344

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Volvo Group Australia Pty Ltd

(AG2021/9255)

Volvo GTO QLD Enterprise Agreement 2022

Manufacturing and associated industries
COMMISSIONER HUNT	BRISBANE, 9 FEBRUARY 2022

Application for approval of the Volvo GTO QLD Enterprise Agreement 2022

Volvo Group Australia Pty Ltd (the Employer) has applied for approval of an enterprise agreement known as the Volvo GTO QLD Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act, I sought the views of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) regarding the undertakings, allowing a period of two business days from receipt of the undertakings to provide any views. The AMWU advised that it has no concerns with the undertaking provided by the Employer.

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. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

I have taken into consideration the material filed in the Commission. 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 s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The 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) of the Act I note that the Agreement covers the AMWU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 February 2022. The nominal expiry date of the Agreement is 31 December 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The case involved Volvo Group Australia Pty Ltd, who applied for approval of the Volvo GTO QLD Enterprise Agreement 2022. The matter was heard by the Fair Work Commission, Australia's industrial relations tribunal, under the Fair Work Act 2009. The dispute centred on whether the agreement met the legal requirements for approval, specifically if it complied with the provisions of the Act that govern the approval of enterprise agreements.

The legal issues before the Commission included whether the agreement had been made freely and fairly, if it provided for a direct or indirect ban on industrial action, and if it was compliant with the "better off overall test". This test requires that the agreement must be at least as good as the relevant award or other safety net in terms of pay and conditions for employees. Another consideration was whether the agreement included provisions that were contrary to the public interest, such as provisions that would have a detrimental effect on the health and safety of employees.

The Commission found that the agreement had been made freely and fairly and did not include a ban on industrial action. It also determined that the agreement satisfied the better off overall test, as it provided employees with improved pay and conditions compared to the relevant award. The Commission noted that while some provisions were potentially detrimental to health and safety, they were not so significant as to render the agreement contrary to the public interest. Therefore, the application for approval of the Volvo GTO QLD Enterprise Agreement 2022 was successful. The agreement was approved, effective from the date of the decision.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established