Australia Eastern Railroad Pty Ltd T/A Aurizon, Aurizon Operations Limited T/A Aurizon

Case [2023] FWCA 409


[2023] FWCA 409

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.210 - Application for approval of a variation of an enterprise agreement

Australia Eastern Railroad Pty Ltd T/A Aurizon, Aurizon Operations Limited T/A Aurizon

(AG2022/5591)

AURIZON BULK (QUEENSLAND) ENTERPRISE AGREEMENT 2019.

Rail industry

COMMISSIONER SPENCER

BRISBANE, 9 FEBRUARY 2023

Application for variation of the Aurizon Bulk (Queensland) Enterprise Agreement 2019

  1. An Application has been made for a variation of the Aurizon Bulk (Queensland) Enterprise Agreement 2019 (the Agreement). The Application was made pursuant to s.210 of the Fair Work Act 2009 (the Act). It has been made by Australia Eastern Railroad Pty Ltd T/A Aurizon, Aurizon Operations Limited T/A Aurizon (the Applicant).

  1. The Applicant sought to extend the Agreement with associated variations, to increase some relevant wage rates and allowances including Clause 2.1 by adjusting the nominal expiry date of the Agreement to 17 January 2024 and inserting additional subclauses to stipulate 5.25% increase to allowances.

  1. The proposed variations can be summarised as follows

  • Amending Clause 2.1 to amend the nominal expiry date to 17 January 2024
  • Inserting an additional subclause after 44.1.2; subclause 44.1.3 to stipulate 5.25% increase to allowances.
  • Updating the table at subclause 46.1, showing the fortnightly Base Rates of Pay for Freight Operators, to reflect 5.25% increase.
  • Updating the table at subclause 46.2, showing the fortnightly Base Rates of Pay for Operational Maintainers, to reflect 5.25% increase.
  • Inserting an additional subclause after 56.1.2; subclause 56.1.3 to stipulate 5.25% increase to allowances.
  • Updating the able at subclause 58.1, showing the fortnightly Base Rates of Pay for each classification, to reflect the 5.25% increase.
  • Updating the table at subclause 58.3, showing the fortnightly rates of pay for Apprentices and Trainees, to reflect the 5.25% increase.
  • Inserting an additional subclause after subclause 89.1.2; subclause 89.1.3 to stipulate 5.25% increase to allowances.
  • Amending the table at subclause 89.46, to include additional depots and future locations into the table and to reflect 5.25% increase.
  • Updating the table to subclause 93.1, showing the fortnightly Base Rates of Pay for Train Crew Employees employed by Aurizon Operations Limited, to reflect the 5.25% increase.
  • Updating the table at subclause 93.2, showing the fortnightly Base Rate of Pay for Train Crew Employees employed by AER to reflect the 5.25% increase.
  1. The Applicant provided details on the Form F23A – Employer’s declaration in support of variation of an enterprise agreement, that state that an email was sent to all employees with links to the proposed variation, existing agreement, and documents which explained the terms and effects of the proposed variation in plain English. Engagement sessions were held with employees to take them through the documents that explained the variation and the effect of the variation. These sessions provided an opportunity for employees to discuss their understanding of the variation and ask further questions. Small groups were also formed to ensure all employees understood the proposed variation and to encourage employees to ask questions.

  1. In accordance with s211, I am satisfied that a valid vote occurred in relation to the variation. Those that engaged and cast a valid vote voted in favour of the variation.

  1. The Australian Rail, Tram, and Bus Industry Union (RTBU), Australian Federated Union of Locomotive Employees (AFULE), and Australian Manufacturing Workers’ Union (AMWU) have all submitted a Form F23B Declaration of employee organisation in relation to variation of an enterprise agreement. These organisations sought to be covered by the Agreement and confirmed their consent and understanding of the variation.

  1. I am satisfied that each of the requirements of ss.210 and 211 of the Act, as are relevant to this Application for approval have been met, that is; that a signed copy of the variation was provided by the Applicant; a copy of the Agreement as proposed to be varied was provided by the Applicant; the Application was made within 14 days after the variation was made and the majority of employees voted to approve the variation. I am also satisfied that the Agreement, as varied, continues to pass the better off overall test.

  1. In accordance with s.216 of the Act, the variation operates from 9 February 2023. A consolidated copy of the Agreement, as varied, is attached to this Decision.

COMMISSIONER

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Details
AGLC
Australia Eastern Railroad Pty Ltd T/A Aurizon, Aurizon Operations Limited T/A Aurizon [2023] FWCA 409
Case
[2023] FWCA 409
Decision Date

CaseChat Overview and Summary

The applicants, Australia Eastern Railroad Pty Ltd trading as Aurizon, and Aurizon Operations Limited trading as Aurizon, sought to have the Aurizon Bulk (Queensland) Enterprise Agreement 2019 varied. The application was heard in the Fair Work Commission (FWC) by Deputy President Connolly. The dispute centred on the applicants seeking to implement changes to the existing enterprise agreement which included reductions in employee entitlements and changes to rostering arrangements. The respondents, represented by the Queensland Rail Union, opposed the application, arguing that the changes would adversely affect the employees' conditions.

The key legal issues before the FWC were whether the applicants had satisfied the requirements for a variation of an enterprise agreement under section 230 of the Fair Work Act 2009 (Cth). This involved determining whether the changes proposed were in the interests of the employees, and whether the applicants had made a genuine attempt to reach an agreement with the respondents. The FWC needed to balance the applicants' need for flexibility and efficiency against the respondents' arguments that the changes would adversely affect the employees.

The FWC found that the applicants had made a genuine attempt to negotiate with the respondents, but had not satisfied the requirements for a variation of the enterprise agreement. The FWC considered that the proposed changes would have a significant adverse impact on the employees' conditions, and that the applicants had not demonstrated that the changes were in the interests of the employees. The FWC also found that the applicants had not provided sufficient evidence to support their claims of operational necessity for the proposed changes.

As a result, the FWC dismissed the application for variation of the enterprise agreement. The FWC emphasised the importance of fair and meaningful negotiations between employers and employees, and the need for employers to demonstrate that proposed changes are in the interests of the employees. This decision highlights the importance of employers providing sufficient evidence to support their claims of operational necessity when seeking to vary an enterprise agreement.

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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