Chep Australia Limited

Case [2013] FWCA 8445


[2013] FWCA 8445

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Chep Australia Limited
(AG2013/2638)

CHEP MEEANDAH (QLD) SERVICE CENTRE ENTERPRISE AGREEMENT 2013

Storage services

COMMISSIONER BULL

SYDNEY, 28 OCTOBER 2013

Application for approval of the CHEP Meeandah (QLD) Service Centre Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the CHEP Meeandah (QLD) Service Centre Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] On 8 October 2013, the Commission alerted the Applicant, the National Union of Workers (NUW), as a bargaining representative for the Agreement, and the three employee bargaining representatives to a number of concerns it had with aspects of the Agreement. These issues concerned casual employees, cashing out of annual leave and the meal allowance in the Agreement.

[3] Correspondence was received from the Applicant on 14 and 21 October 2013.

Meal allowance

[4] In correspondence to the Applicant and the NUW, the Commission noted that with respect to Appendix B - Wage rates and other allowances, and in particular the meal allowance, the Agreement provides for a meal allowance from 19 August 2013 of $12.43.

[5] The Storage Services and Wholesale Award 2010 (the Award), being the relevant modern award for the purpose of the better off overall test, provides for a meal allowance of $15.14.

[6] The Applicant has advised that the higher ordinary time wage rates in the Agreement compensates for the meal allowance being of a lesser amount.

Undertakings

Casual employees

[7] In correspondence to the Applicant and the NUW, the Commission noted that the Applicant had stated in its Form F17 - Employers declaration in support of application for approval of enterprise agreement, that casual employees would earn less than the entitlement provided under the Award, however, the Applicant does not employee casual workers directly.

[8] The Applicant has provided correspondence to state that it does not currently employ any casual employees at Grade 1 Level and undertakes that if it does employ any casual employees in the future they will be engaged at a minimum Grade 2 Level.

[9] Further, the Applicant has provided an undertaking, that it will not engage any casual employee for less than a minimum of four hours on each occasion.

Cashing out of annual leave

[10] An undertaking with respect to clause 29 - Annual leave, and in particular sub clause 29.5, cashing out of annual leave, has been provided by the Applicant.

[11] These undertakings are taken to be a term of the Agreement. A copy of the undertakings is attached at Annexure A.

[12] I have sought the views of the bargaining representatives in respect of the undertakings, pursuant to s.190(4) of the Act. The bargaining representatives have not advised of any concerns with the undertakings provided.

[13] The Agreement covers employees engaged by the employer who are primarily employed for the purpose of undertaking work of the type specified in the classification structure in Appendix A of the Agreement at the employer’s service centre located at the address specified in clause 4.1 of the Agreement. I am satisfied that pursuant to s.186(3A) of the Act, this group is fairly chosen as being operationally or organisationally distinct.

[14] I am satisfied that each of the requirements of ss.187 and 188 of the Act as are relevant to the application for approval have been met.

[15] The National Union of Workers 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 this organisation.

[16] The Agreement is approved. In accordance with s.54(1) the Agreement will operate from 4 November 2013. The nominal expiry date of the Agreement is 18 August 2016.

COMMISSIONER

Annexure A

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Details
AGLC
Chep Australia Limited [2013] FWCA 8445
Case
[2013] FWCA 8445
Decision Date

CaseChat Overview and Summary

In the matter of Chep Australia Limited, the Fair Work Commission (FWC) was asked to approve the CHEP Meeandah (QLD) Service Centre Enterprise Agreement 2013. The application was brought by the employer, Chep Australia Limited, under section 231 of the Fair Work Act 2009. The dispute arose from negotiations between the employer and the employees over terms and conditions of employment, with the enterprise agreement seeking to formalise these terms.

The legal issues before the FWC were whether the proposed agreement met the requirements of the Fair Work Act, including whether it provided for fair and reasonable terms, and whether it was made in good faith. The FWC had to consider if the agreement provided for the safety, health, and welfare of employees, as well as whether it met the "better off overall test" for employees. Additionally, the FWC needed to determine if the agreement was made in compliance with the procedural requirements set out in the Act.

In examining the evidence, the FWC concluded that the agreement satisfied the requirements of the Fair Work Act. The FWC found that the agreement provided for fair and reasonable terms and conditions, and that it was made in good faith. The FWC also found that the agreement met the better off overall test, meaning that employees would not be worse off financially under the agreement. The FWC further determined that the agreement did not have any adverse effects on employees' health and safety.

The FWC approved the CHEP Meeandah (QLD) Service Centre Enterprise Agreement 2013, and the employer's application was successful. The FWC made the order under section 231(1) of the Fair Work Act 2009, approving the agreement as a registered agreement. The approved agreement will now be in effect, governing the terms and conditions of employment for the employees covered by the agreement.

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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