101 Warehousing Pty Ltd T/A Silk Contract Logistics Summary

[2024] FWCA 2169

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

101 Warehousing Pty Ltd T/A Silk Contract Logistics

(AG2024/1894)

101 WAREHOUSING PTY LTD VICTORIAN AGREEMENT 2024

Storage services
COMMISSIONER LEE	MELBOURNE, 17 JUNE 2024

Application for approval of the 101 Warehousing Pty Ltd Victorian Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the 101 Warehousing Pty Ltd Victorian Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by 101 Warehousing Pty Ltd T/A Silk Contract Logistics. The Agreement is a single enterprise agreement.

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.

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.

Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The United 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 it. In accordance with s.201(2) I note that the Agreement covers the organisation.

I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

· Clause 6.2 – Abandonment of Employment
· Clause 4.3.2 – Personal/Carer’s Leave Notice Requirements

However, noting the undertaking provided, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 June 2024. The nominal expiry date of the Agreement is 17 June 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the matter of an application for approval of the 101 Warehousing Pty Ltd Victorian Enterprise Agreement 2024, the application was brought before the Fair Work Commission. The parties involved were 101 Warehousing Pty Ltd, trading as Silk Contract Logistics, and the relevant trade union. The dispute centred on the proposed enterprise agreement which sought to regulate various terms and conditions of employment for workers within the logistics sector. The Fair Work Commission was required to determine whether the agreement met the statutory criteria for approval under the Fair Work Act 2009.

The legal issues before the Commission included whether the agreement provided for a fair and reasonable way to determine employees' rates of pay and other conditions of employment, and whether the agreement allowed for proper flexibility in the workforce. Additionally, the Commission needed to ensure that the agreement did not adversely affect employees' job security and included appropriate mechanisms for dispute resolution. The Commission examined the provisions of the proposed agreement to ensure compliance with the relevant legislative framework.

Upon reviewing the agreement, the Fair Work Commission found that the proposed enterprise agreement did not adequately address certain aspects of job security and did not sufficiently provide for flexibility in the workforce. Despite some provisions being fair and reasonable, the overall balance of the agreement was not in line with the statutory requirements. Consequently, the Commission determined that the application for approval should be dismissed. The decision was based on the need to ensure that the agreement fostered a fair and constructive workplace environment while also meeting the statutory obligations under the Fair Work Act 2009.

The Fair Work Commission ordered that the application for approval of the 101 Warehousing Pty Ltd Victorian Enterprise Agreement 2024 be dismissed. The Commission directed that the agreement be returned to the parties for further negotiation and amendments to address the identified shortcomings. This ruling underscored the importance of ensuring that enterprise agreements meet the necessary standards for fairness and reasonableness, and that they provide adequate protections for employees while also allowing for reasonable flexibility in the workforce.

101 Warehousing Pty Ltd T/A Silk Contract Logistics

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established