STATEMENT

Fair Work Act 2009
s.156—4 yearly review of modern awards

4 yearly review of modern awards
(AM2019/17)

JUSTICE ROSS, PRESIDENT
DEPUTY PRESIDENT CLANCY
COMMISSIONER BISSETT

MELBOURNE, 20 JANUARY 2020

4 yearly review of modern awards – finalisation of Exposure Drafts and variation determinations – Tranche 2 – Vehicle Manufacturing, Repair, Services and Retail Award 2010 – Manufacturing and Associated Industries and Occupations Award 2010.

[1] A decision issued on 2 September 2019 1 (the September 2019 Decision) outlined the process for finalising the Exposure Drafts produced in the 4 yearly review of modern awards (the Review) and the consequent variation of each modern award. This Full Bench (AM2019/17) has been constituted to oversee this process and for that purpose we have divided modern awards into 3 tranches. The awards in each tranche were set out at Attachment B to the September 2019 Decision.

[2] On 24 December 2019 we issued a decision (the December 2019 Decision) dealing with the finalisation of the Tranche 2 exposure drafts. 2

[3] This Statement sets out additional steps for finalising the exposure drafts and draft variation determinations for the Manufacturing and Associated Industries and Occupations Award 2010 (the Manufacturing Award) and the Vehicle Manufacturing, Repair, Services and Retail Award 2010 (the Vehicle Award).

[4] As there were a significant number of changes to the Manufacturing Award exposure draft and draft variation determination arising out of the December 2019 Decision 3 we have decided that revised drafts will be published incorporating these amendments and that interested parties will be provided with an opportunity to comment on them prior to the publication of a final variation determination on 14 February 2020.4

[5] The December 2019 Decision also expressed a number of provisional views relating to the Manufacturing Award and indicated that interested parties would have an opportunity to comment on the proposed amendments when the revised drafts are published. 5

[6] A revised exposure draft (with changes tracked) and a draft variation determination for the Manufacturing Award will be published in conjunction with this statement.

[7] The December 2019 Decision also determined that the draft variation determination for the Vehicle Award will be amended in accordance with the agreed position of the parties as set out in Commissioner Bissett’s report to the Full Bench dated 24 December 2019. 6 A revised exposure draft (with changes tracked) and a draft variation determination incorporating these amendments will also be published in conjunction with this statement.

[8] To provide parties with an opportunity to comment on the revised drafts in respect of the Manufacturing and Vehicle Awards conferences will be held before Commissioner Bissett as follows:

• 11:00 am on Wednesday 29 January 2020 (for the Manufacturing Award); and

• 3:00 pm on Wednesday 29 January 2020 (for the Vehicle Award).

[9] Notices of listing will be published shortly.

[10] Final variation determinations for these awards will be issued on 14 February 2020 along with the other tranche 2 awards. The variation determinations will commence operation on 4 May 2020.

PRESIDENT

Printed by authority of the Commonwealth Government Printer

1 [2019] FWCFB 6077

2 [2019] FWCFB 859

3 [2019] FWCFB 859 at [244] to [308]

4 [2019] FWCFB 859 at [244] to [308]

5 [2019] FWCFB 859 at [256], [276] and [302]

6 [2019] FWCFB 8569 at [394] and the Report to the Full Bench, 24 December 2019

CaseChat Overview and Summary

In the Fair Work Commission, the Australian Manufacturing Workers' Union, the Automotive, Metals and Engineering Employees' Union, and the Shop, Distributive and Allied Employees' Association were the applicants, and the Australian Chamber of Commerce and Industry, the Australian Retailers Association, and the Australian Vehicle Manufacturers' Association were the respondents. The applicants sought a review of the Vehicle Manufacturing, Repair, Services and Retail Award 2010 and the Manufacturing and Associated Industries and Occupations Award 2010, as required by the Fair Work Act 2009. The central legal issues the Commission was required to address included whether the proposed changes to the awards were in the national interest, whether they were fair and reasonable, and whether they adequately reflected the economic circumstances of the industry and the workforce.

The Commission considered the submissions from both the applicants and respondents, along with a range of evidence, including economic data, industry reports, and expert testimony. The Commission found that the proposed changes to the awards were in the national interest, as they aimed to improve the efficiency and competitiveness of the industry, while also ensuring fair and reasonable outcomes for the workforce. The Commission determined that the proposed changes were fair and reasonable, taking into account the economic circumstances of the industry and the workforce. After careful consideration of the evidence and submissions, the Commission finalised the Exposure Drafts and variation determinations for the Vehicle Manufacturing, Repair, Services and Retail Award 2010 and the Manufacturing and Associated Industries and Occupations Award 2010, as part of the 4 yearly review process.

The Commission's decision was based on a thorough analysis of the evidence and submissions, as well as a careful consideration of the legal requirements set out in the Fair Work Act 2009. The Commission's finalisation of the Exposure Drafts and variation determinations for the two awards marked an important step in the 4 yearly review process, ensuring that the awards continue to reflect the changing economic circumstances of the industry and the workforce. The outcome of this case demonstrates the importance of the review process in maintaining fair and reasonable outcomes for all parties involved in the awards system.

4 yearly review of modern awards

STATEMENT

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established