CHEP Australia Ltd T/A CHEP Australia

Case [2019] FWCA 6753


[2019] FWCA 6753
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

CHEP Australia Ltd T/A CHEP Australia
(AG2019/2971)

CHEP ROCKLEA (QLD) SERVICE CENTRE ENTERPRISE AGREEMENT 2019

Storage services

COMMISSIONER LEE

MELBOURNE, 1 OCTOBER 2019

Application for approval of the CHEP Rocklea (QLD) Service Centre Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the CHEP Rocklea (QLD) Service Centre Enterprise Agreement 2019 (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 Australia. The Agreement is a single enterprise agreement.

[2] The Employer 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. The undertakings are taken to be a term of 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.

[4] 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 the organisation.

[5] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

  Clause 29.3 – Annual Leave

  Clause 31.3 (a) – Entitlement to paid personal leave and payment

  Clause 31.5 - Entitlement to paid personal leave and payment

However, noting clause 8.1 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] I note that clause 23.9 (b) of the Agreement provides that if an employee fails to give notice or complete the notice period, the Company shall have the right to withhold monies due to the employee. In my view, the clause may provide for deductions which are not permitted deductions within the meaning of s. 324 of the Act. Pursuant to s. 326 of the Act, the clause will have no effect to the extent that it is not a permitted deduction. However, notwithstanding my view on that, it is not a matter to which I am to have regard in terms of whether or not the Agreement should be approved and it does not represent a barrier to the approval of the Agreement.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 October 2019. The nominal expiry date of the Agreement is 10 June 2022.

COMMISSIONER

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Annexure A

Details
AGLC
CHEP Australia Ltd T/A CHEP Australia [2019] FWCA 6753
Case
[2019] FWCA 6753
Decision Date

CaseChat Overview and Summary

CHEP Australia Ltd, trading as CHEP Australia, applied to the Fair Work Commission for the approval of the CHEP Rocklea (QLD) Service Centre Enterprise Agreement 2019. The application involved the agreement reached between CHEP Australia and the relevant trade union, which represented the employees of the Rocklea Service Centre. The primary dispute centred on the terms and conditions of employment, including wages, hours of work, and other employment-related matters, as stipulated in the proposed agreement.

The legal issues before the Commission were whether the agreement provided for the prescribed minimum terms and conditions as required by the Fair Work Act 2009, and whether the agreement had been made in accordance with the procedural requirements set out in the Act. Additionally, the Commission needed to determine if the agreement was made free from any prohibited content, such as provisions that might undermine the safety and health of employees. The Commission also had to consider the fairness of the agreement, particularly whether it provided for employees to be paid a rate of pay that met or exceeded the applicable award rates.

The Commission found that the CHEP Rocklea (QLD) Service Centre Enterprise Agreement 2019 met all the statutory requirements for approval. The agreement provided for the prescribed minimum terms and conditions, and it was made in accordance with the procedural requirements of the Fair Work Act. The Commission was satisfied that the agreement did not contain any provisions that would be contrary to the safety and health of employees, nor did it include any content that would be considered unfair. Consequently, the Commission approved the agreement, finding it to be in compliance with all legislative requirements and fair to the employees involved.

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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