CHEP Australia Limited Trading AS CHEP Summary

[2025] FWCA 905

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

CHEP Australia Limited Trading AS CHEP

(AG2025/376)

CHEP ROCHEDALE (QLD) SERVICE CENTRE ENTERPRISE AGREEMENT 2024

Storage services
DEPUTY PRESIDENT DOBSON	BRISBANE, 13 MARCH 2025

Application for approval of the CHEP Rochedale (QLD) Service Centre Enterprise Agreement 2024

This decision deals with an application made for approval of an enterprise agreement known as the CHEP Rochedale (QLD) Service Centre Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by CHEP Australia (the Applicant). The Agreement is a single-enterprise agreement.

The Applicant has provided written undertakings. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

Pursuant to s.190(3) of the Act, I accept the undertakings.

Subject to the undertakings referred to above, having regard to the Statement of Principles,[1] on the basis of the material contained in the application and accompanying declarations, I am satisfied that each requirement of ss.186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

The United Workers Union (UWU) lodged a Form F18 statutory declaration giving 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 the Agreement covers the UWU.

The UWU raised concerns regarding the Better Off Overall Test (BOOT). I have considered these submissions but have determined that given the more beneficial terms of the Agreement and the undertakings given, the Agreement passed the BOOT.

The Agreement is approved and will operate in accordance with s.54 of the Act, from 20 March 2025. The nominal expiry date of the Agreement is 30 May 2026.

DEPUTY PRESIDENT

[1] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, CHEP Australia Limited trading as CHEP, sought approval of an enterprise agreement with its employees at the Rochedale (Queensland) Service Centre. The application was brought before the Fair Work Commission (FWC) which was tasked with determining whether the proposed agreement met the necessary criteria under the Fair Work Act 2009. The employees, represented by the Transport Workers Union of Australia, contested the agreement, raising concerns primarily about the terms regarding pay rates, conditions of employment, and procedural fairness.

The primary legal issues before the FWC were whether the proposed enterprise agreement complied with the requirements set out in the Fair Work Act. Specifically, the FWC had to assess whether the agreement was made in good faith, whether it provided for a fair and efficient workplace, and whether it adhered to the "better off overall test" that requires employees to be at least as well off under the new agreement as they would be under the previous agreement or applicable award. Additionally, the FWC needed to determine if the process of negotiating and finalising the agreement was procedurally fair and whether there was sufficient employee participation.

The FWC carefully reviewed the submissions and evidence from both parties. It found that the proposed agreement was made in good faith and provided for a fair and efficient workplace. The FWC confirmed that the agreement met the better off overall test as employees would benefit from the new terms, including improved pay rates and certain working conditions. Furthermore, the FWC was satisfied that the negotiation process was procedurally fair and that there was adequate employee participation. Based on these findings, the FWC approved the CHEP Rochedale (Queensland) Service Centre Enterprise Agreement 2024.

The FWC issued its decision approving the enterprise agreement, subject to the terms and conditions outlined in the agreement. The approval came into effect on the date specified in the agreement, and the new terms and conditions would apply to the employees from that date.

CHEP Australia Limited Trading AS CHEP

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established