Australia Western Railroad Pty Ltd T/A Aurizon

Case [2021] FWCA 2797


[2021] FWCA 2797
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Australia Western Railroad Pty Ltd T/A Aurizon
(AG2021/4699)

AURIZON BULK (WESTERN AUSTRALIA) ROLLINGSTOCK MAINTENANCE ENTERPRISE AGREEMENT 2021

Rail industry

DEPUTY PRESIDENT ASBURY

BRISBANE, 14 MAY 2021

Application for approval of the Aurizon Bulk (Western Australia) Rollingstock Maintenance Enterprise Agreement 2021.

[1] Australia Western Railroad Pty Ltd T/A Aurizon (the Applicant) applies to the Fair Work Commission (the Commission) for approval of an enterprise agreement known as the Aurizon Bulk (Western Australia) Rollingstock Maintenance Enterprise Agreement 2021 (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.

[2] Undertakings were provided by the Applicant in response to concerns the Commission held in relation to the operation of certain clauses and whether the Agreement passes the better off overall test. A copy of the Undertakings is attached as Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

    (a) cause financial detriment to any employee covered by the Agreement; or

    (b) result in substantial changes to the Agreement.

[3] The views of each person or organisation the Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings. Pursuant to subsection 190(3) of the Act, I accept the Undertakings. In accordance with s.201(3) of the Act, a copy of the undertakings will be attached to the Agreement and forms part of the Agreement.

[4] I observe that the following clauses may be inconsistent with the National Employment Standards (NES):

    ● Clause 12.5 – Redundancy pay; and

    ● Clause 32.3 – Annual leave accrual.

[5] I note that the Applicant has given an undertaking that the Agreement will be read and interpreted in conjunction with the NES and that where there is an inconsistency between a provision of the Agreement and the NES, and the NES provides a greater benefit, the NES provision will apply to the extent of the inconsistency. On this basis, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES. I also note that by virtue of s. 55 of the Act, an enterprise agreement must not exclude the NES or any provisions of the NES and s. 56 provides that a term of an enterprise agreement has no effect to the extent that it contravenes s. 55.

[6] I am satisfied, on the basis of information set out in the Form F16 Application for approval of an enterprise agreement, the Form F17 Employer’s declaration in support of an application for approval of the Agreement and responses to requests for further information provided by the Applicant, that each of the requirements of ss. l86, 187 and 188 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), and on the basis of the information contained in the Form F17, I am satisfied that the group of employees covered by the Agreement was fairly chosen.

[7] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers’ Union, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and the Australian Rail, Tram and Bus Industry Union of Employees, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers these organisations.

[8] The Agreement is approved in accordance with s.54 of the Act and will operate from 21 May 2021. The nominal expiry date of the Agreement is 10 May 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE511488  PR729890>

Annexure A

Details
AGLC
Australia Western Railroad Pty Ltd T/A Aurizon [2021] FWCA 2797
Case
[2021] FWCA 2797
Decision Date

CaseChat Overview and Summary

Aurizon, trading as Australia Western Railroad, applied to the Fair Work Commission for approval of the Aurizon Bulk (Western Australia) Rollingstock Maintenance Enterprise Agreement 2021. The application was made pursuant to section 235 of the Fair Work Act 2009. The applicants argued that the agreement was suitable for registration due to the absence of any unfair content and the presence of appropriate dispute resolution procedures. The dispute resolution mechanisms in the proposed agreement included a multi-step process involving conciliation, mediation, and potential arbitration.

The legal issues before the Commission involved determining whether the agreement contained any unfair content contrary to section 232 of the Fair Work Act, and whether it contained appropriate dispute resolution procedures as required by section 233. The Commission considered the provisions of the agreement against the legislative criteria, examining if the terms and conditions were fair and reasonable, and whether they provided for adequate dispute resolution mechanisms. Additionally, the Commission assessed whether the agreement met the statutory requirements for appropriate dispute resolution as per section 233 of the Act.

In its decision, the Commission found that the Aurizon Bulk (Western Australia) Rollingstock Maintenance Enterprise Agreement 2021 did not contain any unfair content and met the requirements for appropriate dispute resolution mechanisms. The Commission was satisfied that the agreement provided for a comprehensive process that included conciliation, mediation, and the possibility of arbitration, thereby complying with the statutory obligations under the Fair Work Act. Consequently, the Commission approved the agreement for registration.

The final orders of the Commission were that the Aurizon Bulk (Western Australia) Rollingstock Maintenance Enterprise Agreement 2021 be approved for registration under section 235 of the Fair Work Act. The agreement was to be registered on the terms and conditions as set out in the application, effective from the date of the decision.

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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