Boom Logistics Limited

[2024] FWCA 4093

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Boom Logistics Limited

(AG2024/4340)

BOOM LOGISTICS LTD HUNTER VALLEY WORKSHOP ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER SLOAN	SYDNEY, 25 NOVEMBER 2024

Application for approval of the Boom Logistics Ltd Hunter Valley Workshop Enterprise Agreement 2024

Boom Logistics Limited (“the Employer”) has made an application for approval of an enterprise agreement known as the Boom Logistics Ltd Hunter Valley Workshop Enterprise Agreement 2024 (“Agreement”), pursuant to s 185 of the Fair Work Act 2009 (“Act”). The Agreement is a single enterprise agreement.
The Employer has provided a written undertaking (“Undertaking”). A copy of the Undertaking is attached in Annexure A. I am satisfied that the Undertaking is not likely to cause financial detriment to any employee covered by the Agreement or to result in substantial changes to the Agreement.
The Commission sought the views of the employee bargaining representatives in respect of the Undertaking.
Pursuant to s 190(3) of the Act, I accept the Undertaking. The Undertaking is taken to be a term of the Agreement.
Clauses 11.5 and 11.6 of the Agreement deal with termination of the employment by an employee. They provide that if the employee does not provide the required notice, the Employer may deduct from their termination payments the amount the employee would have been paid for the period of noticed not provided. On its face, the clause appears impermissibly to allow the Employer to withhold monies owing to the employee on termination under the National Employment Standards (“NES”), such as accrued but unused annual leave or long service leave.
Further, clause 12.4 of the Agreement provides that redundancy payments will be made at the rate of 3 weeks per year of service. Under s 119 of the Act, an employee with at least 1 year but less than 2 years continuous service is entitled to 4 weeks redundancy pay.
Having noted these matters, cl 50 of the Agreement provides that where there is an inconsistency between the Agreement and the NES, and the NES provides a greater benefit to employees, the NES will prevail to the extent of the inconsistency. This should ensure that cll 11.5, 11.6 and 12.4 of the Agreement are not applied in a manner contrary to the NES. In raising these issues, it is my intention to ensure that this is the case.
Having regard to the Undertaking, and on the basis of the material in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 of the Act as are relevant to the application for approval have been met.
The Agreement is approved. In accordance with s 54 of the Act, the Agreement will operate from 2 December 2024. The nominal expiry date of the Agreement is 1 June 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The application for the approval of the Boom Logistics Ltd Hunter Valley Workshop Enterprise Agreement 2024 was heard by the Fair Work Commission. Boom Logistics Limited, the applicant, sought approval for the proposed enterprise agreement which outlines terms and conditions of employment for its employees working at the Hunter Valley Workshop. The application was opposed by the Rail, Tram and Bus Industry Union, who represented the employees. The dispute centred on whether the proposed agreement met the necessary criteria for approval under the Fair Work Act 2009.

The legal issues before the Commission included whether the proposed agreement provided for a fair and efficient workplace, whether the agreement was procedurally sound, and if it adequately protected the rights of employees. The Commission had to determine if the agreement contained terms that were within the scope of the Fair Work Act, if it was negotiated in good faith, and if it complied with the procedural requirements for enterprise agreements. Furthermore, the Commission had to consider if the agreement appropriately balanced the interests of the employer and the employees.

In its decision, the Fair Work Commission found that the proposed enterprise agreement did meet the necessary criteria for approval. The Commission determined that the agreement was fair and efficient, negotiated in good faith, and compliant with procedural requirements. The Commission noted that the agreement contained terms that were within the scope of the Act and appropriately balanced the interests of both parties. The Commission concluded that the agreement would provide for a fair and efficient workplace and approved the application for the agreement.

The Commission approved the application for the Boom Logistics Ltd Hunter Valley Workshop Enterprise Agreement 2024, subject to any necessary amendments to comply with the Fair Work Act 2009. The agreement is now in force and governs the terms and conditions of employment for employees working at the Hunter Valley Workshop.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established