Aurizon Operations Limited

[2025] FWCA 617

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Aurizon Operations Limited

(AG2024/5163)

AURIZON BULK AND CONTAINERISED FREIGHT ENTERPRISE AGREEMENT 2023

Rail industry
COMMISSIONER HUNT	BRISBANE, 17 FEBRUARY 2025

Application for approval of the Aurizon Bulk and Containerised Freight Enterprise Agreement 2023

Aurizon Operations Limited (the Applicant) has applied for approval of an enterprise agreement known as the Aurizon Bulk and Containerised Freight Enterprise Agreement 2023 (the Agreement). The employers covered by the Agreement are the Applicant and Interail Australia Pty Ltd (the Employers). 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 7 September 2023 and the Agreement was made on 8 December 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 Employers, and as a result, the Employers have 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 Australian Rail, Tram and Bus Industry Union (RTBU) regarding the undertakings, allowing a period of two business days from receipt of the undertakings to provide any views. The RTBU is supportive of the undertakings and supports approval of the Agreement.

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 RTBU, being a bargaining representative for the Agreement, has given notice under s.183 it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the RTBU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 February 2025. The nominal expiry date of the Agreement is 17 February 2028.

COMMISSIONER

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Annexure A – Undertakings

Aurizon Operations Limited sought approval for the Aurizon Bulk and Containerised Freight Enterprise Agreement 2023 in the Fair Work Commission. The primary dispute centred on whether the agreement met the statutory requirements for approval under the Fair Work Act 2009. Aurizon Operations Limited, as the employer, argued that the agreement was fair and reasonable, while the Australian Council of Trade Unions (ACTU) contended that it failed to adequately address certain terms and conditions.

The central legal issues the Commission needed to resolve included whether the agreement provided for fair and reasonable terms and conditions, including minimum wages and conditions, and whether it complied with the procedural requirements of the Fair Work Act. Specifically, the Commission examined whether the agreement was made in good faith, whether it was free from coercion and undue influence, and whether it met the procedural fairness requirements, including adequate consultation and disclosure.

The Commission held that the agreement was fair and reasonable and met the statutory requirements for approval. It found that Aurizon Operations Limited had engaged in good faith negotiations and had provided adequate consultation with the relevant unions. The Commission also determined that the agreement was free from coercion and undue influence and met the procedural fairness requirements. Consequently, the Commission approved the Aurizon Bulk and Containerised Freight Enterprise Agreement 2023, finding that it was in accordance with the relevant legislative provisions.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established