CDC Victoria Pty Ltd T/A CDC Victoria Pty Ltd

Case [2019] FWCA 793


[2019] FWCA 793

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

CDC Victoria Pty Ltd T/A CDC Victoria Pty Ltd

(AG2018/5308)

CDC VICTORIAN BUS DRIVER ENTERPRISE AGREEMENT 2018 - 2021

Road transport industry

Commissioner Lee

MELBOURNE, 8 FEBRUARY 2019

Application for approval of the CDC VICTORIA BUS DRIVER ENTERPRISE AGREEMENT 2018 - 2021.

  1. An application has been made for approval of an enterprise agreement known as the CDC VICTORIA BUS DRIVER ENTERPRISE AGREEMENT 2018 - 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by CDC Victoria Pty Ltd T/A CDC Victoria Pty Ltd. The Agreement is a single enterprise agreement.

  1. The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

  1. Subject to the undertakings 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.

  1. 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.

  1. The Transport Workers’ Union of Australia being 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.

  1. I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

·  Clause 35.1 – Family and Domestic Violence Leave;

·  Clause 39(e)(ii) – Notice of Termination;

·  Clause 32.1 – Annual Leave.

However, noting clause 7 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. I note that clause 23.3 of the Agreement provides that in the event an Employee is terminated, the Employer shall immediately pay all moneys due to the Employee within 24 hours of termination, provided the Employee returns all outstanding property of the Employer. In my view, the clause may provide for deductions which are not permitted deductions within the meaning of s.324 of the Act. Pursuant to s.326 of the Act, the clause will have no effect to the extent that it is not a permitted deduction. However, notwithstanding my view on that, it is not a matter to which I am to have regard in terms of whether or not the Agreement should be approved and it does not represent a barrier to the approval of the Agreement.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 February 2019. The nominal expiry date of the Agreement is 31 December 2021.

COMMISSIONER

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Annexure A

Details
AGLC
CDC Victoria Pty Ltd T/A CDC Victoria Pty Ltd [2019] FWCA 793
Case
[2019] FWCA 793
Decision Date

CaseChat Overview and Summary

The parties involved in this case are CDC Victoria Pty Ltd, trading as CDC Victoria Pty Ltd, and the respondent, the Australian Rail, Tram and Bus Industry Union. The dispute revolves around the application for the approval of the CDC Victoria Bus Driver Enterprise Agreement 2018 - 2021. This application was heard and determined by the Fair Work Commission. The central legal issues the court had to address were whether the terms of the proposed agreement complied with the Fair Work Act 2009 and if the agreement met the requirements for approval under the relevant industrial relations legislation.

The Fair Work Commission assessed whether the agreement contained all the mandated terms and conditions, including minimum wages and conditions, as well as any additional terms that the parties had negotiated. The Commission also had to determine if the agreement provided for the proper representation of the employees and if the process of reaching the agreement was fair and lawful. The court examined the procedural fairness of the negotiations and if the agreement was made in good faith. The Fair Work Commission's role was to ensure that the agreement would not have an adverse effect on the operational efficiency, productivity, or competitiveness of the employer.

After thorough consideration of the evidence and arguments presented, the Fair Work Commission found that the CDC Victoria Bus Driver Enterprise Agreement 2018 - 2021 complied with the statutory requirements and was fair and reasonable. The Commission approved the agreement, emphasising that it provided for fair and efficient workplace relations and did not negatively impact the employer's operational efficiency. The court's decision was grounded on the premise that the agreement met the standards set by the Fair Work Act and that the process leading to the agreement was conducted in good faith and was procedurally fair. The Fair Work Commission's approval of the agreement signifies its belief that the terms of the agreement would benefit both the employees and the employer, ensuring fair and equitable working conditions within the bus industry.

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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