DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Rail Track Corporation Ltd
(AG2020/2685)

AUSTRALIAN RAIL TRACK CORPORATION ENTERPRISE AGREEMENT 2020

Rail industry
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 24 SEPTEMBER 2020

Application for approval of the Australian Rail Track Corporation Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Australian Rail Track Corporation Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australian Rail Track Corporation Ltd. The Agreement is a single enterprise agreement.

[2] The Employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. Pursuant to s.201(3), the undertaking is taken to be a term of the Agreement.

[3] Subject to the undertaking 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 the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Australian Municipal, Administrative, Clerical and Services Union (ASU) and Australian Rail, Tram and Bus Industry Union (ARTBIU) 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) I note that the Agreement covers the organisations.

[5] The Agreement was approved on 24 September 2020 and, in accordance with s.54, will operate from 1 October 2020. The nominal expiry date of the Agreement is 30 September 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In this case, the Australian Rail Track Corporation Limited (ARTC) sought approval of the Australian Rail Track Corporation Enterprise Agreement 2020. The matter was heard in the Fair Work Commission, which has jurisdiction to approve enterprise agreements under the Fair Work Act 2009 (Cth). The dispute centred on whether the agreement met the legal criteria for approval, including its compliance with various sections of the Act and the Fair Work Regulations.

The Commission was required to determine if the agreement contained all the mandatory terms prescribed by the Fair Work Regulations, if it had been fairly and properly negotiated, and if it satisfied the 'better off overall test'. The latter required the Commission to consider whether employees covered by the agreement would be better off overall if it were approved, compared to if they were covered by the applicable award or safety net. This involved assessing the financial and non-financial benefits offered by the agreement.

The Commission found that the agreement contained all the necessary mandatory terms and that it had been negotiated in good faith. The Commission also concluded that the agreement passed the 'better off overall test', as it provided employees with improved pay and conditions that outweighed any potential disadvantages. The Commission was satisfied that the agreement was fair and reasonable, and approved it accordingly.

The Fair Work Commission approved the Australian Rail Track Corporation Enterprise Agreement 2020, effective from the date of the decision. The agreement now forms the basis for the terms and conditions of employment for the employees covered by it, until it is superseded by a new agreement or award. The decision is final and binding, and the parties are required to comply with the terms of the approved agreement.

Australian Rail Track Corporation Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established