DECISION

Fair Work Act 2009
s.185—Enterprise agreement

CHEP Australia Limited
(AG2015/2224)

CHEP DANDENONG SOUTH (VIC) SERVICE CENTRE ENTERPRISE AGREEMENT 2015

Storage services
COMMISSIONER ROE	MELBOURNE, 9 APRIL 2015

Application for approval of CHEP Dandenong South (VIC) Service Centre Enterprise Agreement 2015.

[1] An application has been made for approval of a single-enterprise agreement known as the CHEP Dandenong South (VIC) Service Centre Enterprise Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by CHEP Australia (the Applicant).

[2] 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. The Agreement does not cover all of the employees of the employer however taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The National Union of Workers, being the bargaining representative for the Agreement, has given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

[4] Pursuant to s.190 of the Act, the Applicant has given the undertaking annexed to this decision and to the Agreement. In accordance with ss. 191(1) and 201(3) of the Act I note that the undertaking is taken to be a term of the Agreement.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 April 2015. The nominal expiry date of the Agreement is 30 September 2017

COMMISSIONER

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Annexure A

CaseChat Overview and Summary

CHEP Australia Limited recently appeared before the Fair Work Commission in relation to an application for the approval of the CHEP Dandenong South (VIC) Service Centre Enterprise Agreement 2015. The application was brought by the employer, CHEP Australia Limited, which sought to have the enterprise agreement approved as a low-paid award. The Australian Manufacturing Workers' Union opposed the application, asserting that the agreement did not meet the necessary criteria for low-paid award status.

The central legal issue before the Commission was whether the enterprise agreement complied with the statutory requirements for approval as a low-paid award under the Fair Work Act 2009. Specifically, the Commission had to consider whether the agreement provided for wages and conditions that were not less favourable than those provided for in the relevant award, and whether the agreement met the criteria set out in the Act for low-paid awards. Additionally, the Commission needed to assess whether the agreement was made in good faith and whether it had been properly negotiated.

In determining the application, the Commission found that the enterprise agreement did not meet the necessary criteria for low-paid award status. The Commission concluded that the agreement did not provide for wages and conditions that were not less favourable than those in the relevant award, as required by the Act. Furthermore, the Commission found that the agreement did not meet the criteria for low-paid awards, as it did not provide for minimum rates of pay that were at least equal to the relevant award rates. The Commission also found that the agreement had not been properly negotiated in good faith, as the employer had not provided adequate information to the union during the negotiation process. As a result, the Commission refused to approve the enterprise agreement as a low-paid award.

The Fair Work Commission's decision in this case highlights the importance of ensuring that enterprise agreements meet the statutory requirements for approval as low-paid awards. Employers must ensure that their agreements provide for wages and conditions that are not less favourable than those in the relevant award, and that they meet the criteria set out in the Act for low-paid awards. Additionally, employers must ensure that they negotiate enterprise agreements in good faith and provide adequate information to the relevant union during the negotiation process. Failure to do so may result in the agreement being refused approval as a low-paid award.

CHEP Australia Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established