CHEP Australia Limited

Case [2014] FWCA 306


[2014] FWCA 306

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

CHEP Australia Limited
(AG2013/12231)

CHEP CANNING VALE (WA) SERVICE CENTRE ENTERPRISE AGREEMENT 2013

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COMMISSIONER ROE

MELBOURNE, 13 JANUARY 2014

Application for approval of the CHEP Canning Vale (WA) Service Centre Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the CHEP Canning Vale (WA) Service Centre Enterprise Agreement 2013 (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 7 January 2014. On 9 January 2014 I received a signed undertaking in response to the queries. 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 National Union of Workers has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers this organisation.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 January 2014. The nominal expiry date of the Agreement is 17 January 2017.

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Details
AGLC
CHEP Australia Limited [2014] FWCA 306
Case
[2014] FWCA 306
Decision Date

CaseChat Overview and Summary

CHEP Australia Limited applied for the approval of the CHEP Canning Vale (WA) Service Centre Enterprise Agreement 2013, which was submitted to the Fair Work Commission (FWC) for endorsement. The application was contested by the Maritime Union of Australia (MUA), who argued that the agreement did not meet the requirements of the Fair Work Act 2009 (Cth). The FWC was tasked with determining whether the agreement provided for fair and reasonable terms and conditions of employment.

The central legal issue before the FWC was whether the agreement complied with the provisions of the Fair Work Act, specifically sections 232 and 233. These sections require that enterprise agreements provide for fair and reasonable terms and conditions of employment and that the agreement does not have a detrimental effect on employees’ working conditions. The FWC needed to assess the terms of the agreement against these criteria, including the provisions on employment conditions, wages, and other relevant factors.

The FWC found that the CHEP Canning Vale (WA) Service Centre Enterprise Agreement 2013 did provide for fair and reasonable terms and conditions of employment. It concluded that the agreement met the requirements under the Fair Work Act. The FWC noted the agreement's provisions regarding employment conditions, wages, and other relevant factors were reasonable and did not have a detrimental effect on employees’ working conditions. Accordingly, the FWC approved the agreement.

As a result of the FWC’s decision, the CHEP Canning Vale (WA) Service Centre Enterprise Agreement 2013 was approved and became effective. The agreement will govern the employment terms and conditions for the employees at the Canning Vale service centre in Western Australia. The FWC's approval means the agreement is now binding on both CHEP Australia Limited and the employees covered by the agreement.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

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