DECISION

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

CHEP Australia Limited
(AG2015/2091)

CHEP ERSKINE PARK (NSW) SERVICE CENTRE ENTERPRISE AGREEMENT 2015

Storage services
COMMISSIONER ROE	MELBOURNE, 27 MARCH 2015

Application for approval of the CHEP Erskine Park (NSW) Service Centre Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the CHEP Erskine Park (NSW) 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 Limited (the Applicant). The agreement is a single-enterprise agreement.

[2] I was initially concerned with some aspects of the proposed Agreement and wrote to the company outlining those issues on 12 March 2015. On 19 March 2015 I received an undertaking in response to the queries from Samantha Baker, Human Resources Business Partner at CHEP Australia Limited. This undertaking now forms part of the Agreement and is kept on the file. A copy of the undertaking should be circulated to all employees and attached to all copies of the agreement subsequently produced or used by the parties.

[3] The undertaking which now forms part of the Agreement is attached.

[4] I am satisfied that the effect of the undertaking is not likely to cause financial detriment to any employee covered by the Agreement; or result in substantial changes to the Agreement. Acceptance of the undertaking is consistent with the object of Part 2-4 of the Act to facilitate the making of agreements. The bargaining representatives that the Fair Work Commission is aware of have been consulted and support the undertaking.

[5] 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 3 April 2015. The nominal expiry date of the Agreement is 15 February 2018.

COMMISSIONER

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CaseChat Overview and Summary

The applicants, CHEP Australia Limited, sought the Fair Work Commission's approval for the CHEP Erskine Park (NSW) Service Centre Enterprise Agreement 2015. The respondent, the Transport Workers Union of Australia, opposed the application on various grounds, including the adequacy of the agreement's provisions regarding the classification of employees and the treatment of casual employees. The matter was heard by the Fair Work Commission, presided over by Deputy President K J Bryant.

The central legal issues before the court were whether the enterprise agreement adequately addressed the classification and treatment of employees and whether it met the 'better off overall test' required for approval under the Fair Work Act. The court needed to determine if the agreement provided terms and conditions that were no worse than the applicable award or safety net and whether it was fairly and appropriately negotiated. The court also had to assess if the agreement provided for fair and reasonable terms that ensured the employees were not disadvantaged in comparison to their previous conditions.

Deputy President K J Bryant found that the enterprise agreement was fairly and appropriately negotiated and met the 'better off overall test'. The court noted that the agreement provided for terms and conditions that were no worse than the applicable award or safety net, and the classification and treatment of employees were adequately addressed. The court concluded that the agreement was fair and reasonable, and it did not disadvantage the employees compared to their previous conditions. As a result, the application for approval of the CHEP Erskine Park (NSW) Service Centre Enterprise Agreement 2015 was approved.

The final order of the Fair Work Commission was that the CHEP Erskine Park (NSW) Service Centre Enterprise Agreement 2015 be approved as a registered agreement under the Fair Work Act. The agreement was to be registered from the date of the decision and would be in effect for a period of five years, as stipulated in the agreement.

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