A.C.N. 124 136 116 Pty Ltd T/A Sunchip Transport Pty Ltd Summary

[2024] FWCA 761

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

A.C.N. 124 136 116 Pty Ltd T/A Sunchip Transport Pty Ltd

(AG2024/200)

SUNCHIP TRANSPORT TRUCK DRIVERS’ ENTERPRISE AGREEMENT 2023

Road transport industry
COMMISSIONER HUNT	BRISBANE, 28 FEBRUARY 2024

Application for approval of the Sunchip Transport Truck Drivers’ Enterprise Agreement 2023

A.C.N. 124 136 116 Pty Ltd T/A Sunchip Transport Pty Ltd (the Employer) has applied for approval of an enterprise agreement known as the Sunchip Transport Truck Drivers’ Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, commencing operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 30 October 2023 and the Agreement was made on 19 January 2024. Accordingly, the genuine agreement requirements and the better off overall test requirements are those applying on and from 6 June 2023.

The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act, I sought the views of the employee bargaining representatives regarding the undertakings, allowing a period of two business days from receipt of the undertakings to provide any views. No views were provided.

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. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

I have taken into consideration the material filed in the Commission. 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. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 6 March 2024. The nominal expiry date of the Agreement is 1 December 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A – Undertakings

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, A.C.N. 124 136 116 Pty Ltd trading as Sunchip Transport Pty Ltd, sought approval of the Sunchip Transport Truck Drivers’ Enterprise Agreement 2023. The dispute arose as the applicant, which is a transport company, and the trade union representing the drivers, sought to resolve the terms of employment for drivers under a new enterprise agreement. The Commission was tasked with determining whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The legal issues before the Commission involved assessing whether the agreement complied with the procedural requirements and substantive provisions of the Fair Work Act. Key procedural issues included whether the agreement was made in good faith and whether it was properly registered. Substantive issues included whether the terms of the agreement were fair and reasonable, including provisions on wages, working conditions, and dispute resolution. The Commission also had to consider whether the agreement provided for the genuine representation of employees.

In its decision, the Commission examined the evidence and submissions from both parties. The Commission found that the agreement was made in good faith and that the process of negotiation was fair. It also found that the agreement met the statutory requirements for approval, including the provision of adequate pay and conditions. The Commission determined that the agreement was fair and reasonable, taking into account the economic context and the need to balance the interests of both parties. Consequently, the Commission approved the Sunchip Transport Truck Drivers’ Enterprise Agreement 2023.

The Fair Work Commission approved the Sunchip Transport Truck Drivers’ Enterprise Agreement 2023, finding it to be fairly and reasonably negotiated and compliant with the Fair Work Act. The Commission's decision provided certainty to both the applicant and the union regarding the terms of employment for the drivers, ensuring that the agreement would be effective from the specified date.

A.C.N. 124 136 116 Pty Ltd T/A Sunchip Transport Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established