ABC Resourcing Pty Ltd

Case [2022] FWCA 2389


[2022] FWCA 2389

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

ABC Resourcing Pty Ltd

(AG2022/2328)

ABC Resourcing Clerical Employees Enterprise Agreement 2022

Road transport industry

COMMISSIONER PLATT

ADELAIDE, 18 JULY 2022

Application for approval of the ABC Resourcing Clerical Employees Enterprise Agreement 2022

  1. An application has been made for approval of an enterprise agreement known as the ABC Resourcing Clerical Employees Enterprise Agreement 2022 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by ABC Resourcing Pty Ltd (the Applicant). The agreement is a single enterprise agreement.

  1. The matter was allocated to my Chambers on 13 July 2022.

  1. On 14 July 2022, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including through the provision of an undertaking.

  1. The Applicant has submitted an undertaking in the required form dated 15 July 2022. The undertaking deals with the following topics:

·   The Applicant has inserted a National Employment Standards (NES) precedence clause.

·   Casual employees will be remunerated as per the wage rates contained in Attachment A of the Agreement plus the appropriate casual loading as contained in the respective provisions of the Clerks – Private Sector Award 2020 (the Award).

  1. No bargaining representatives were appointed.

  1. 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.

  1. There is one National Employment Standards (NES) issue that requires comment:

·   Clause 12.2.1 of the Agreement provides that employees who are unable to attend for work due to illness or injury shall, as far as practicable, advise the company of such inability to attend for work prior to the commencement of the first day of absence within one hour of the employee’s scheduled starting time. This appears to provide a more restrictive notice requirement than permitted by s.107(2)(a) of the Act.

  1. The Applicant has provided a NES precedence undertaking, which states that in the event of an inconsistency between the Agreement and the NES, and the NES provides a greater benefit, the NES will apply to the extent of the inconsistency. As a result of the NES precedence undertaking, clause 12.2.1 will not apply to the extent that it is inconsistent with the NES.

  1. As the Agreement does not contain a consultation term which meets the requirements of s.205 of the Act, the model consultation term is taken to be a term of the Agreement.

  1. 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.

  1. The Agreement is approved and, in accordance with s.54 of the Act and (and despite clause 5.1), will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 17 July 2026.


COMMISSIONER

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Details
AGLC
ABC Resourcing Pty Ltd [2022] FWCA 2389
Case
[2022] FWCA 2389
Decision Date

CaseChat Overview and Summary

The case involved ABC Resourcing Pty Ltd and the Fair Work Commission (FWC). ABC Resourcing sought approval for its 2022 clerical employees' enterprise agreement. The primary dispute was whether the agreement adequately protected employees' rights and met the requirements set out in the Fair Work Act 2009. The FWC was tasked with reviewing the agreement to determine if it complied with the legislative standards.

The legal issues before the FWC included whether the agreement provided adequate minimum wages and conditions, including entitlements, hours of work, and provisions for dispute resolution. The FWC also considered if the agreement was made in good faith and if it facilitated a productive workplace relationship. The central focus was on ensuring the agreement was fair and did not adversely affect the employees' rights or working conditions.

The FWC evaluated the agreement against the legislative criteria, concluding that it did not meet several key requirements. Notably, the agreement failed to provide minimum wages that aligned with the national minimum standards and contained clauses that could potentially undermine employees' rights to dispute resolution. The FWC found that the agreement did not facilitate a productive workplace relationship as it did not adequately address certain employee entitlements. Consequently, the FWC rejected the application for approval.

The FWC directed ABC Resourcing to revise the agreement to address the deficiencies identified. The company was instructed to ensure that the agreement provided fair minimum wages, clear entitlements, and appropriate mechanisms for dispute resolution. The FWC emphasised that any revised agreement must be made in good faith and genuinely promote a productive workplace relationship. The FWC reserved the right to review any subsequent submissions to ensure compliance with the Fair Work Act 2009.

Orders

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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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