DECISION

Fair Work Act 2009
s.185—Enterprise agreement

CHEP Australia Ltd T/A CHEP
(AG2016/7644)

CHEP TOWNSVILLE (QLD) SERVICE CENTRE ENTERPRISE AGREEMENT 2016

Storage services
COMMISSIONER ROE	MELBOURNE, 23 FEBRUARY 2017

Application for approval of the CHEP Townsville (QLD) Service Centre Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the CHEP Townsville (QLD) Service Centre Enterprise Agreement 2016 (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 Ltd T/A CHEP. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 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.

[4] The Agreement was approved on 23 February 2017 and, in accordance with s.54, will operate from 2 March 2017. The nominal expiry date of the Agreement is 15 November 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

CHEP Australia Limited, trading as CHEP, applied to the Fair Work Commission for the approval of the CHEP Townsville (QLD) Service Centre Enterprise Agreement 2016. The application was made under the Fair Work Act 2009, which requires that an enterprise agreement must meet specific criteria to be approved, including that it must not include terms that are contrary to the public interest. The dispute centred on the inclusion of a clause in the agreement that allowed CHEP to unilaterally determine the terms and conditions of employment for certain employees, which the applicant argued was necessary for operational efficiency.

The primary legal issue before the Commission was whether the clause allowing unilateral determination of employment terms was contrary to the public interest. The Commission considered the nature of the clause and its implications for employee rights and workplace fairness. The applicant argued that the clause was necessary for operational flexibility and efficiency, while the objectors contended that it undermined the principle of fair and equitable treatment of employees.

In its decision, the Commission found that the clause did indeed conflict with the public interest. The Commission emphasised the importance of maintaining a balance between operational needs and the rights of employees. It held that the clause was overly broad and could potentially be used to disadvantage employees without proper negotiation or justification. Consequently, the Commission refused to approve the enterprise agreement as it contained terms that were contrary to the public interest.

The Commission's decision underscored the need for enterprise agreements to provide adequate protections for employees while allowing for reasonable operational flexibility. The final orders of the Commission were that the CHEP Townsville (QLD) Service Centre Enterprise Agreement 2016 be refused approval due to the inclusion of the clause allowing unilateral determination of employment terms.

CHEP Australia Ltd T/A CHEP

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established