BUTTERFIELDS SERVICES ENTERPRISE AGREEMENT 2014

[2014] FWCA 4655

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Butterfields Services (SA) Pty Ltd
(AG2014/6569)

BUTTERFIELDS SERVICES ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 14 JULY 2014

Application for approval of the Butterfields Services Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Butterfields Services Enterprise Agreement 2014. (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Butterfields Services (SA) Pty Ltd. The Agreement is a single-enterprise agreement.

[2] An undertaking has been provided in the following terms:

“1. The minimum base rate payable to an employee will be $23.00 per hour

2. Except to the extent that an employee chooses their own superannuation fund, the Company will only make contributions into a fund that contains a “My Super Product”

3. Clause 29.3 will not apply to training that is directed by the Company

4. The maximum amount that may be required to be repaid under clause 29.4 is $1,000 for each year (or part year) of service.”

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Attachment 1.

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

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 22 July 2014. The nominal expiry date of the Agreement is 21 July 2018.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Butterfields Services Pty Ltd applied for the approval of a proposed enterprise agreement. The application was made under section 173 of the Fair Work Act 2009. The applicant is an employer engaged in the road transport industry, with employees represented by the Transport Workers Union of Australia. The union and the employer negotiated the Butterfields Services Enterprise Agreement 2014. The union submitted the agreement to the Fair Work Commission for approval. The employer made no submissions on the application.

The central legal issue was whether the proposed agreement met the criteria for approval under the Fair Work Act 2009. The criteria included that the agreement must not provide for terms and conditions that are less favourable than the safety net provided by the relevant award or the national system of employment. The applicant argued that the agreement provided for terms and conditions that were not less favourable than the safety net. The union submitted that the agreement was not less favourable than the safety net. The employer made no submissions.

The Fair Work Commission found that the proposed agreement did not provide for terms and conditions that were less favourable than the safety net. The agreement contained provisions that were consistent with, or improved upon, the safety net. The agreement provided for minimum rates of pay, penalty rates, leave entitlements, and other conditions that were not less favourable than the relevant award. The Commission was satisfied that the agreement met the criteria for approval under the Fair Work Act 2009.

The Fair Work Commission approved the Butterfields Services Enterprise Agreement 2014. The agreement will operate from 22 July 2014 and will expire on 21 July 2018, unless terminated earlier in accordance with the agreement or the Fair Work Act 2009.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established