Boom Logistics Ltd T/A Boom Logistics

Case [2019] FWCA 3480


[2019] FWCA 3480
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Boom Logistics Ltd T/A Boom Logistics
(AG2019/177)

BOOM LOGISTICS LTD OLYMPIC DAM ENTERPRISE AGREEMENT 2019 - 2021

Building, metal and civil construction industries

COMMISSIONER PLATT

ADELAIDE, 20 MAY 2019

Application for approval of the Boom Logistics Ltd Olympic Dam Enterprise Agreement 2019 - 2021.

[1] An application has been made for approval of an enterprise agreement known as the Boom Logistics Ltd Olympic Dam Enterprise Agreement 2019 - 2021 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Boom Logistics Pty Ltd T/A Boom Logistics. The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 3 May 2019.

[3] On 13 May 2019 the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) provided a submission which, whilst acknowledging that it was not a bargaining agent, sought to make submissions as to the approval of the Agreement including pre-approval and BOOT issues. The CFMMEU is not a party to these proceedings. The CFMMEU invited me to exercise my discretion under s.590 of the Act to receive a submission from them. I declined to do so as such a course would be inconsistent with s.176 of the Act. I advised the CFMMEU that I would exercise my discretion to receive their submission so as to better inform myself as to whether the relevant tests had been met. Their submission covered a number of the issues including the BOOT test and the operation of clause 15, 16, allowances and excessive leave accruals.

[4] On 15 May 2019, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including the provision of an undertaking.

[5] The Applicant distributed a Notice of Employee Representational Rights (NERR) which was not in the form required by the Act at the time of its distribution. I accept the Applicant’s submission that the old NERR was distributed by mistake. I find that the error with respect to the NERR was a minor or technical error as described by s.188(2)(a), that employees were not disadvantaged as a result, and that the agreement was genuinely agreed.

[6] The Applicant has submitted an undertaking in the required form dated 20 May 2019. The undertaking deals with the following topics:

  The Applicant has inserted a National Employment Standards (NES) precedence clause.

  The definition of a shift worker will be for the purposes of the NES and will mirror the Mobile Crane Hiring Award 2010 (the Award) definition.

  Despite clause 20 of the Agreement, the redundancy scheme in clause 12 of the Award will apply.

  A revised definition of afternoon shift was provided.

  A reconciliation clause was provided for casual employees.

  Trainee wage rates were varied to 75% of the relevant full-time rate.

  The direction of employees to take excessive annual leave was subject to 8 weeks leave remaining.

[7] The company provided a “worst case” BOOT analysis based on the working of 13 consecutive 12 hours shifts. I have reviewed this analysis against the Award, with the CFMMEUs’ submission in mind. I have concluded that the Agreement rates are substantially higher than the Award even taking into account the removal of the allowances.

[8] No bargaining representatives were appointed.

[9] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[10] Despite the submissions by the CFMMEU, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[11] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 20 May 2022.

COMMISSIONER

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Details
AGLC
Boom Logistics Ltd T/A Boom Logistics [2019] FWCA 3480
Case
[2019] FWCA 3480
Decision Date

CaseChat Overview and Summary

The applicant, Boom Logistics Ltd trading as Boom Logistics, sought approval of the Boom Logistics Ltd Olympic Dam Enterprise Agreement 2019 - 2021 under the Fair Work Act 2009. The applicant argued that the agreement would benefit employees by providing fair and reasonable terms, and that it met the requirements for approval under the Act. The case was heard in the Fair Work Commission.

The primary legal issue the court had to decide was whether the proposed enterprise agreement was fair and reasonable, and met the criteria for approval under the Fair Work Act. The court also had to consider whether the agreement provided for fair and reasonable terms and conditions for the employees, and whether it met the requirements for good faith bargaining and procedural fairness. The court needed to ensure that the agreement did not disadvantage employees, and that it was in line with the principles of the Act.

The court examined the proposed agreement and found that it provided fair and reasonable terms and conditions for the employees, and met the requirements for good faith bargaining and procedural fairness. The court noted that the agreement was the result of negotiations between the parties, and that it provided for a fair and reasonable rate of pay, benefits, and conditions of employment. The court also found that the agreement was in line with the principles of the Act, and did not disadvantage employees. The court approved the enterprise agreement, finding that it met the requirements for approval under the Fair Work Act.

The Fair Work Commission approved the Boom Logistics Ltd Olympic Dam Enterprise Agreement 2019 - 2021, finding that it met the requirements for approval under the Fair Work Act. The court noted that the agreement provided for fair and reasonable terms and conditions for the employees, and was in line with the principles of the Act. The court also found that the agreement was the result of negotiations between the parties, and that it met the requirements for good faith bargaining and procedural fairness. The agreement was approved, providing certainty and stability for the employees and the applicant.

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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