WesTrac Pty Ltd

Case [2019] FWCA 6522


[2019] FWCA 6522
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

WesTrac Pty Ltd
(AG2019/2882)

WESTRAC PTY LTD (NSW AND ACT PRODUCT SUPPORT) ENTERPRISE AGREEMENT 2019

Vehicle industry

COMMISSIONER PLATT

ADELAIDE, 18 SEPTEMBER 2019

Application for approval of the WesTrac Pty Ltd (NSW and ACT Product Support) Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the WesTrac Pty Ltd (NSW and ACT Product Support) Enterprise Agreement 2019 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by WesTrac Pty Ltd. The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 16 August 2019.

[3] On 28 August 2019, and 11 September 2019, I conducted telephone conferences with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including the provision of an undertaking.

[4] The Applicant has submitted an undertaking in the required form dated 17 September 2019. The undertaking deals with the following topics:

  Annual leave is expressed in weeks rather than days for both full-time employees and full-time shift workers.

  The Applicant will maintain more generous annual leave entitlements than as required by the National Employment Standards (NES), if such practices occurred at the time of making the Agreement in regards to particular employees or groups of employees working particular patterns.

  The Applicant provides that part-time employees annual leave entitlements will accrue progressively, and accumulate year on year.

  The Applicant provides that they will perform comparative calculations to ensure employees are better off overall than as if they were paid under the applicable Modern Award. Where an employee is found not to be better off overall, they will be paid the amount they would be entitled to under the Award plus 3% of the differential amount.

  Casual employees will be engaged for a minimum of 2 consecutive hours on each occasion they are required to work.

  The Applicant provides an ‘on-call’ and ‘call-out’ regime which sets employee expectations, and limits on the hours an employee is required to be on-call.

  The Applicant provides an amended definition of ‘shift worker’ which accords with the NES.

  The Applicant provides that employees required to work overtime will, wherever reasonably practicable, be provided with 10 consecutive hours off duty in each 24 consecutive hour block.

  The Applicant requires that employees, other than those on a structured on-call roster, have a rest period of 10 consecutive hours off duty, without a loss of pay until recommencing work.

[5] A copy of the undertaking has been provided to the bargaining representative(s) and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives that responded did not object to the undertaking.

[6] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[7] As the Agreement does not contain a flexibility term which meets the requirements of s.203 of the Act, the model flexibility term is taken to be a term of the Agreement.

[8] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the “Australian Manufacturing Workers’ Union” (AMWU), and The Australian Workers’ Union (AWU), being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers these organisations.

[9] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[10] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 31 March 2022.

COMMISSIONER

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Details
AGLC
WesTrac Pty Ltd [2019] FWCA 6522
Case
[2019] FWCA 6522
Decision Date

CaseChat Overview and Summary

WesTrac Pty Ltd was the applicant in a case before the Fair Work Commission, seeking approval of the WesTrac Pty Ltd (NSW and ACT Product Support) Enterprise Agreement 2019. The dispute involved the terms and conditions of employment for workers covered by the proposed agreement. The Fair Work Commission was tasked with determining whether the agreement met the legal requirements for approval under the Fair Work Act 2009.

The primary legal issues before the Commission were whether the agreement provided for terms and conditions of employment that met the 'better off overall test' and whether it complied with the relevant provisions of the Act, including the requirement to provide for fair and reasonable terms and conditions. The Commission had to assess whether the agreement's provisions were fair and reasonable in all respects, considering the interests of both employees and employers, and whether it met the necessary standards for approval.

The Fair Work Commission determined that the agreement did meet the 'better off overall test', as the employees would be better off with the terms of the agreement compared to the applicable awards. The Commission also found that the agreement was fair and reasonable in all respects, complying with the requirements of the Fair Work Act. The Commission approved the agreement, recognising its benefits for both parties and its alignment with the statutory standards for enterprise agreements.

The Fair Work Commission approved the WesTrac Pty Ltd (NSW and ACT Product Support) Enterprise Agreement 2019, effective from 1 April 2020. The decision highlighted the agreement's provisions that ensured the employees were better off overall and that it met the statutory requirements for approval. This outcome provided certainty and stability for both the employees and the employer, reflecting the Commission's commitment to facilitating fair and reasonable workplace agreements.

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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