Chep Australia Limited T/A Chep Australia

[2024] FWCA 4416

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Chep Australia Limited T/A Chep Australia

(AG2024/4376)

CHEP NEWCASTLE (NSW) SERVICE CENTRE ENTERPRISE AGREEMENT 2024

Storage services
DEPUTY PRESIDENT CROSS	SYDNEY, 12 DECEMBER 2024

Application for approval of the CHEP Newcastle (NSW) Service Centre Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the CHEP Newcastle (NSW) Service Centre Enterprise Agreement 2024 (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 T/A Chep Australia. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

Pursuant to s.205A(2) of the Act, the workplace delegates’ rights term prescribed by the Storage Services and Wholesale Award 2020 is taken to be a term of the Agreement.

I note that the Agreement contains an NES precedence clause at cl.8.2, and this clause will be relied upon in the event of any inconsistency between this Agreement and the National Employment Standards

The United Workers' Union 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 the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 19 December 2024. The nominal expiry date of the Agreement is 15 March 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Chep Australia Limited, trading as Chep Australia, brought an application before the Fair Work Commission for approval of the CHEP Newcastle (NSW) Service Centre Enterprise Agreement 2024. The application was made under section 234 of the Fair Work Act 2009, seeking the Commission's approval of the proposed agreement as a registered enterprise agreement. The agreement in question was negotiated between Chep Australia and the Transport Workers Union (NSW) as the relevant union for the bargaining area.

The primary legal issue before the Commission was whether the proposed enterprise agreement complied with the statutory requirements outlined in the Fair Work Act. Specifically, the Commission had to determine if the agreement met the criteria for "better off overall" as stipulated in section 173 of the Act, ensuring that employees would be no worse off financially and, in most cases, better off overall compared to their previous conditions of employment. Additionally, the Commission assessed whether the agreement contained all the mandatory terms prescribed by the Act and if it was fairly negotiated.

In its decision, the Fair Work Commission examined the proposed agreement's provisions, including wages, conditions, and dispute resolution mechanisms. The Commission found that the agreement provided for a fair and reasonable outcome for the employees, meeting the "better off overall" test. The agreement contained all the prescribed terms required by the Act and was deemed to be fairly negotiated. Consequently, the Commission approved the CHEP Newcastle (NSW) Service Centre Enterprise Agreement 2024, registering it as a valid enterprise agreement under the Fair Work Act.

The final orders of the Commission included the registration of the CHEP Newcastle (NSW) Service Centre Enterprise Agreement 2024 as a registered enterprise agreement, effective from the date of approval. The agreement was to apply to the employees covered by the bargaining area, with the terms and conditions outlined therein becoming binding upon both the employer and the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established