CDC Victoria Pty Ltd

[2022] FWCA 2888

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

CDC Victoria Pty Ltd

(AG2022/3337)

CDC VICTORIA BUS DRIVER ENTERPRISE AGREEMENT 2022 – 2025

Passenger vehicle transport (non rail) industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 23 AUGUST 2022

Application for approval of the CDC Victoria Bus Driver Enterprise Agreement 2022 - 2025

An application has been made by CDC Victoria Pty Ltd pursuant to s.185 of the Fair Work Act 2009 for approval of a single enterprise agreement known as the CDC Victoria Bus Driver Enterprise Agreement 2022 - 2025 (the Agreement).

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 will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

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.

Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The Transport Workers’ Union of Australia, a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 August 2022. The nominal expiry date of the Agreement is 31 March 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved CDC Victoria Pty Ltd, an operator of bus services in Victoria, and its employees represented by the Transport Workers Union. The dispute centred on the approval of the CDC Victoria Bus Driver Enterprise Agreement 2022-2025. The matter was heard in the Fair Work Commission (FWC), Australia's workplace relations tribunal. The legal issues that arose for determination were whether the agreement complied with the Fair Work Act 2009, specifically in relation to minimum wage rates, penalty rates, and the process for approving the agreement.

The FWC considered whether the agreement provided for fair and reasonable terms and conditions, including adequate wage rates and penalty rates. The Commission also examined whether the agreement was made in accordance with the procedural requirements set out in the Fair Work Act. The Transport Workers Union argued that the proposed agreement did not adequately provide for minimum wage rates and did not ensure appropriate penalty rates for certain working conditions. CDC Victoria, on the other hand, asserted that the agreement was fair and met all statutory requirements.

In its decision, the FWC found that while the majority of the terms and conditions in the proposed agreement were fair and reasonable, there were deficiencies in the wage provisions and the process for approving the agreement. The FWC noted that the proposed minimum wage rates did not align with the relevant award provisions and did not adequately protect the employees' interests. Furthermore, the FWC determined that the process for approving the agreement did not comply with the statutory requirements, as it did not involve sufficient employee consultation. As a result, the FWC did not approve the agreement. The FWC ordered that the agreement be returned to the parties for amendment and re-submission, with specific directions regarding the wage rates and consultation process.

In conclusion, the FWC did not approve the CDC Victoria Bus Driver Enterprise Agreement 2022-2025 due to deficiencies in the wage provisions and the approval process. The FWC ordered the parties to amend the agreement and resubmit it for approval, with specific directions on wage rates and consultation.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established