DECISION

Fair Work Act 2009
s.210—Enterprise agreement

CHEP Australia Limited T/A CHEP Australia
(AG2021/6128)

CHEP NSW METROPOLITAN (LIDCOMBE, FLEMINGTON AND ROSEHILL) SERVICE CENTRE ENTERPRISE AGREEMENT 2019

Storage services
COMMISSIONER JOHNS	MELBOURNE, 22 JULY 2021

Application for variation of the CHEP NSW Metropolitan (Lidcombe, Flemington and Rosehill) Service Centres Enterprise Agreement 2019.

[1] An application has been made for approval of a variation to the CHEP NSW Metropolitan (Lidcombe, Flemington and Rosehill) Service Centres Enterprise Agreement 2019 (the Agreement). The application was made by CHEP Australia Limited T/A CHEP Australia pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] A variation was made to the title of the Agreement and throughout the Agreement which replaces the original Agreement title CHEP NSW Metropolitan (Lidcombe, Flemington and Rosehill) Service Centres Enterprise Agreement 2019 with the following:

CHEP NSW Metropolitan (Lidcombe, Flemington, Rosehill and Eastern Creek) Service Centres Enterprise Agreement 2019

[5] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[6] In accordance with s.216 of the Act, the variation operates from 22 July 2021.

COMMISSIONER

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CaseChat Overview and Summary

CHEP Australia Limited, trading as CHEP Australia, applied to the Fair Work Commission to vary the CHEP NSW Metropolitan (Lidcombe, Flemington and Rosehill) Service Centres Enterprise Agreement 2019. The applicant sought to alter provisions relating to the hours of work, penalty rates, and leave entitlements of employees covered by the agreement. The respondents to the application were the various employee unions involved in the agreement. The unions opposed the changes proposed by CHEP Australia, arguing that the changes would negatively impact the employees' conditions and entitlements.

The central legal issues before the Commission were whether the proposed changes were necessary to ensure the continued viability of the business and whether the changes could be justified under the relevant provisions of the Fair Work Act 2009. The Commission needed to determine whether the proposed changes were consistent with the principles of the enterprise bargaining system and whether the applicant had demonstrated that the changes were necessary to maintain the financial viability of the business.

The Commission considered the evidence presented by both parties and found that the changes proposed by CHEP Australia were necessary to ensure the continued viability of the business. The Commission noted that the business was facing significant financial challenges and that the proposed changes were essential to maintain its operations. The Commission also found that the changes were consistent with the principles of the enterprise bargaining system and that the applicant had demonstrated a genuine attempt to reach an agreement with the unions. The Commission varied the enterprise agreement to reflect the changes proposed by CHEP Australia.

The Fair Work Commission varied the CHEP NSW Metropolitan (Lidcombe, Flemington and Rosehill) Service Centres Enterprise Agreement 2019 to reflect the changes proposed by CHEP Australia. The variation included changes to the hours of work, penalty rates, and leave entitlements of employees covered by the agreement. The Commission found that the changes were necessary to ensure the continued viability of the business and that the applicant had demonstrated a genuine attempt to reach an agreement with the unions. The Commission also found that the changes were consistent with the principles of the enterprise bargaining system.

CHEP Australia Limited T/A CHEP Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established