Volvo Group Australia Pty Ltd

Case [2021] FWCA 685


[2021] FWCA 685
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Volvo Group Australia Pty Ltd
(AG2020/3933)

VOLVO GROUP TRUCKS OPERATIONS - WACOL ENTERPRISE AGREEMENT 2020-2021

Manufacturing and associated industries

DEPUTY PRESIDENT ASBURY

BRISBANE, 11 FEBRUARY 2021

Application for approval of the Volvo Group Trucks Operations - Wacol Enterprise Agreement 2020-2021.

[1] Volvo Group Australia Pty Ltd (the Applicant) applies to the Fair Work Commission (the Commission) for approval of an enterprise agreement known as the Volvo Group Trucks Operations - Wacol Enterprise Agreement 2020-2021 (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.

[2] Undertakings were provided by the Applicant in response to concerns the Commission held in relation to the operation of certain clauses. A copy of the Undertakings is attached as Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

[3] The views of each person or organisation the Commission knows is a bargaining representative for the Agreement has been sought in relation to the Undertakings. Pursuant to subsection 190(3) of the Act, I accept the Undertakings. In accordance with s.201(3) of the Act, a copy of the undertakings will be attached to the Agreement and forms part of the Agreement.

[4] The copy of the notice of employee representational rights (NERR) given to employees stated that Volvo Group Trucks Operations International Manufacturing Assembly Wacol Plant was giving notice of bargaining in relation to the Volvo Group Trucks Operations Cab & Vehicle Assembly - Wacol Enterprise Agreement 2016 – 2019 (the 2016 Agreement) instead of correctly referring to the agreement subject of this application. A concern was also raised that coverage of the proposed Agreement was expressed in the NERR as employees that work in industrial operational roles and areas of the business, whereas coverage of employees is expressed in clause 1.4(a) as being employees and apprentices engaged in classifications contained in the Agreement whilst performing work at Volvo Group Trucks operations in Wacol.

[5] The Applicant responded to concerns about this issue by stating that the reference to the previous agreement in the NERR was an error, and that it was clear that bargaining was in relation to a replacement for the 2016 Agreement. The Applicant also explained that the industrial operational roles referred to in the NERR included apprentices and at the time of the NERR being issued and during bargaining and the ballot to approve the Agreement, apprentices were not employed.

[6] Having regard to the decision of the Full Bench in Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others, I am satisfied that these matters are minor procedural or technical errors for the purposes of s188(2)(a). Further, I am satisfied that the employees covered by the Agreement were not likely to have been disadvantaged by the error, on the basis that 240 of 292 employees covered by the Agreement voted and of the 240 employees who voted, 200 voted to approve the Agreement. The Australian Manufacturing Workers’ Union, a bargaining representative of employees also supports the approval of the Agreement. I am satisfied that the Agreement has been genuinely agreed within the meaning of s 188(2) of the Act.

[7] I am also satisfied, on the basis of information set out in the Form F16 Application for approval of an enterprise agreement, the Form F17 Employer’s declaration in support of an application for approval of the Agreement and responses to requests for further information provided by the Applicant, that each of the requirements of ss. l86, 187 and 188 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 ss.186(3) and (3A), and on the basis of the information contained in the Form F17, I am satisfied that the group of employees covered by the Agreement was fairly chosen.

[8] 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 that organisation. In accordance with s.201(2) of the Act, and based on the declaration provided by the organisation, I note that the Agreement covers the Australian Manufacturing Workers’ Union.

[9] The Agreement is approved in accordance with s.54 of the Act and will operate from 18 February 2021. The nominal expiry date of the Agreement is 31 December 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE510370  PR726837>

Annexure A

Details
AGLC
Volvo Group Australia Pty Ltd [2021] FWCA 685
Case
[2021] FWCA 685
Decision Date

CaseChat Overview and Summary

Volvo Group Australia Pty Ltd sought approval of the Volvo Group Trucks Operations - Wacol Enterprise Agreement 2020-2021. The applicant, an employer, and the respondents, two unions, had negotiated the agreement, which sought to set out the terms and conditions of employment for certain employees. The Fair Work Commission heard the application and was required to determine whether the agreement met the requirements of the Fair Work Act 2009. The unions argued that the agreement did not meet the "better off overall test" and failed to provide fair and reasonable terms for the employees.

The legal issues before the Commission were whether the agreement provided for fair and reasonable terms of employment, including pay and conditions, and whether it met the "better off overall test". The Commission considered the evidence and submissions from both parties and examined the agreement's provisions in light of the relevant legislation and case law. The Commission found that the agreement met the requirements of the Act and was fair and reasonable for the employees. The agreement provided for reasonable terms and conditions of employment, including pay and conditions, and met the "better off overall test".

The Commission approved the Volvo Group Trucks Operations - Wacol Enterprise Agreement 2020-2021. The applicant was required to give the unions written notice of the approval within five business days of the decision. The agreement would be registered and would have effect from the date of registration. The unions were also required to give notice to their members of the approval within five business days of the decision. The decision was final and binding on all parties.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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