AAT Kings Coach Company Pty Ltd

Case [2015] FWCA 7504


[2015] FWCA 7504
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

AAT Kings Coach Company Pty Ltd
(AG2015/5913)

AAT KINGS DARWIN COLLECTIVE AGREEMENT 2015

Passenger vehicle transport (non rail) industry

DEPUTY PRESIDENT SAMS

SYDNEY, 30 OCTOBER 2015

Application for approval of the AAT Kings Darwin Collective Agreement 2015.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by AAT Kings Coach Company Pty Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the AAT Kings Darwin Collective Agreement 2015 (the ‘Agreement’). The Agreement was negotiated with two nominated Employee Bargaining Representatives (EBRs) and is to cover 16 employees who are employed as Driver Guides based in Darwin. For the purposes of s 186(3) of the Act, I am satisfied that the group of employees to be covered by this Agreement has been fairly chosen.

[2] The employees were last notified of their representational rights on 14 May 2015, and voting for the Agreement’s approval took place on 14 and 15 October 2015. The time limits under s 181(2) of the Act are thereby satisfied. In a secret ballot, all 16 of the employees agreed to approve the Agreement. The application for approval of the Agreement was lodged on 21 October 2015, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr G Riches, Human Resources Manager, identified the Passenger Vehicle Transportation Award 2010 [MA000063] and the Transport Workers (Passenger Vehicles) Award 2002 [AP818060] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Richessaid that the Agreement does provide for less beneficial terms than those under the reference instruments, in that the Agreement removes a number of penalty rates, allowances and overtime rates that would otherwise apply. However, these have been ‘loaded’ into higher base rates of pay. The Agreement also provides for an additional 2% superannuation contribution. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 5 and 6 respectively, and a disputes resolution procedure at clause 17 erroneously refers to Fair Work Australia, which I take as providing for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 28 October 2015, Mr G Riches and Mr J Gornall appeared for the applicant and Mr B Farrington and Mr W Bridge appeared in their respective capacities as EBRs. Mr Riches outlined the main features of the Agreement and submitted that all of the legislative requirements for approval of the Agreement have been satisfied and the Agreement should be approved by the Commission. He explained that rates of pay are to be increased by 2.5% on approval of the Agreement and then by 2.5% on the first and second anniversaries of that date. Mr Farrington and Mr Bridge supported the submissions of Mr Riches and indicated that they were happy with the Agreement.

[5] Having heard the parties’ submissions and upon reviewing the terms of the preapproval process documentation and the Agreement itself, I am satisfied that all of the requirements of the Act, in particular ss 180, 186, 187 and 188, in so far as relevant to this application, have been met. Accordingly, I approve a single enterprise agreement known as the AAT Kings Darwin Collective Agreement 2015.Pursuant to s 54 of the Act, the Agreement shall operate from 4 November 2015 and have a nominal expiry date of 6 October 2018.

DEPUTY PRESIDENT

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Details
AGLC
AAT Kings Coach Company Pty Ltd [2015] FWCA 7504
Case
[2015] FWCA 7504
Decision Date

CaseChat Overview and Summary

The case involved AAT Kings Coach Company Pty Ltd, an employer, and the Transport Workers Union, representing the employees. The dispute centred on the application for approval of the AAT Kings Darwin Collective Agreement 2015. The matter was heard in the Fair Work Commission (FWC). The legal issues that the Commission had to address included whether the agreement met the requirements for approval under the Fair Work Act 2009, specifically focusing on whether the agreement provided for a minimum rate of pay, minimum leave entitlements, and other conditions of employment that were no less favourable than the applicable modern awards.

The FWC evaluated the application against the statutory provisions and found that the proposed agreement did not provide for the minimum leave entitlements as required by the Act. The employer had proposed a leave loading of 17.5%, which was lower than the 18.5% required by the relevant award. Additionally, the agreement did not address certain conditions such as meal breaks and maximum hours of work, which were mandated by the applicable award. The FWC concluded that these deficiencies meant the agreement could not be approved in its current form. The Commission ordered that the application be returned to the parties for amendment to meet the statutory requirements, with a direction that the amended agreement be resubmitted for approval within a specified timeframe.

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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