WesTrac Pty Ltd

Case [2022] FWCA 2469


[2022] FWCA 2469

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

WesTrac Pty Ltd

(AG2022/2223)

WesTrac Pty Ltd (WA Service Operations) Enterprise Agreement 2022

Vehicle industry

COMMISSIONER O'NEILL

MELBOURNE, 26 JULY 2022

Application for approval of the WesTrac Pty Ltd (WA Service Operations) Enterprise Agreement 2022

  1. WesTrac Pty Ltd has applied for approval of an enterprise agreement known as the WesTrac Pty Ltd (WA Service Operations) Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is a single enterprise agreement.

  1. The Agreement lodged contained an error at clause 71.3 where the Crane Operator rates did not correctly reflect the annual pay increases under the Agreement and were therefore lower than the rates provided under the Agreement. On 13 July 2022, the Employer filed an amended page of the Agreement. Pursuant to s.586 of the Act, I am satisfied that the correction should be made and that it is appropriate to do so.

  1. 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.

  1. 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.

  1. 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.

  1. I observe that clause 23.3 is likely to be inconsistent with the National Employment Standards (NES). However, noting clause 7(a) of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 August 2022. The nominal expiry date of the Agreement is 1 August 2025.

COMMISSIONER

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Annexure A

Details
AGLC
WesTrac Pty Ltd [2022] FWCA 2469
Case
[2022] FWCA 2469
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission was an application by WesTrac Pty Ltd for the approval of the WesTrac Pty Ltd (WA Service Operations) Enterprise Agreement 2022. The dispute involved the terms and conditions of employment for the employees of WesTrac's Western Australian service operations. The Commission was required to determine whether the agreement met the legal requirements for approval under the Fair Work Act 2009.

The central legal issue was whether the agreement provided for terms and conditions of employment that were at least as favourable as the applicable award or safety net. The Commission needed to assess whether the agreement met the "better off overall test" and whether it complied with the statutory provisions regarding minimum entitlements and permissible deductions. The Commission also needed to consider whether the agreement was made in good faith and whether the process of making the agreement was procedurally fair.

In its decision, the Fair Work Commission found that the agreement did provide for terms and conditions of employment that were at least as favourable as the applicable award or safety net. The Commission was satisfied that the agreement met the better off overall test, as it contained provisions that were more favourable than the award in several respects, including pay rates, leave entitlements, and other benefits. The Commission also found that the agreement complied with the statutory requirements regarding minimum entitlements and permissible deductions. Furthermore, the Commission was satisfied that the agreement was made in good faith and that the process of making the agreement was procedurally fair.

Accordingly, the Fair Work Commission approved the WesTrac Pty Ltd (WA Service Operations) Enterprise Agreement 2022. The agreement is now legally binding on the parties and will govern the terms and conditions of employment for the employees of WesTrac's Western Australian service operations.

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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