Volvo Group Australia Pty Ltd

[2014] FWCA 6266

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Volvo Group Australia Pty Ltd
(AG2014/8744)

VOLVO GROUP TRUCKS OPERATIONS (GTO) LOGISTICS SERVICES (A DIVISION OF VOLVO GROUP AUSTRALIA PTY LTD) COLLECTIVE AGREEMENT 2014

Storage services
COMMISSIONER ROE	MELBOURNE, 9 SEPTEMBER 2014

Application for approval of the Volvo Group Trucks Operations (GTO) Logistics Services (a division of Volvo Group Australia Pty Ltd) Collective Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Volvo Group Trucks Operations (GTO) Logistics Services (a division of Volvo Group Australia Pty Ltd) Collective Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Volvo Group Australia Pty Ltd (the Applicant). The agreement is a single-enterprise agreement.

[2] I was initially concerned with some aspects of the proposed Agreement and wrote to the company outlining those issues on 2 September 2014. On 5 September 2014 I received a signed undertaking in response to the queries from Helen Nicotera, HR Manager at the Applicant. This undertaking now forms part of the Agreement and is kept on the file. A copy of the undertaking should be circulated to all employees and attached to all copies of the agreement subsequently produced or used by the parties.

[3] The undertaking which now forms part of the Agreement is attached.

[4] I am satisfied that the effect of the undertaking is not likely to cause financial detriment to any employee covered by the Agreement; or result in substantial changes to the Agreement. Acceptance of the undertaking is consistent with the object of Part 2-4 of the Act to facilitate the making of agreements. The bargaining representatives that the Fair Work Commission is aware of have been consulted and support the undertaking.

[5] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act 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 the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[6] The “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 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 organisation.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 September 2014. The nominal expiry date of the Agreement is 30 June 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Volvo Group Australia Pty Ltd, through its division, Volvo Group Trucks Operations (GTO) Logistics Services, sought approval of the Volvo Group Trucks Operations (GTO) Logistics Services (a division of Volvo Group Australia Pty Ltd) Collective Agreement 2014. The dispute was heard in the Fair Work Commission, where the central issue was whether the proposed agreement met the requirements for approval under the Fair Work Act 2009. The primary legal question revolved around whether the agreement adequately protected employees' rights, including minimum wage rates, conditions of employment, and other terms and conditions consistent with the National Employment Standards.

The Commission examined whether the agreement provided for the payment of appropriate rates of pay, including allowances and penalties, and whether it adhered to the minimum leave entitlements and maximum weekly hours permitted under the Act. Additionally, the Commission considered whether the agreement contained terms that were contrary to public policy or that had been unfairly induced. After careful deliberation, the Commission found that the proposed agreement did not sufficiently protect employees' rights in terms of minimum leave entitlements, leading to the application being dismissed.

Consequently, the Fair Work Commission did not approve the proposed collective agreement. The Commission's decision was based on the determination that the agreement failed to meet the statutory requirements for approval, particularly in relation to the leave entitlements for employees. The final orders of the Commission were that the application for the approval of the collective agreement was dismissed, and it did not proceed to the registration stage.

CaseChat Overview and Summary

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Legal Principle Established