CHEP Australia T/A CHEP

Case [2017] FWCA 1195


[2017] FWCA 1195
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

CHEP Australia T/A CHEP
(AG2016/7867)

CHEP EDINBURGH PARKS (SA) SERVICE CENTRE ENTERPRISE AGREEMENT 2016

Storage services

COMMISSIONER ROE

MELBOURNE, 2 MARCH 2017

Application for approval of the CHEP Edinburgh Parks (SA) Service Centre Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the CHEP Edinburgh Parks (SA) 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 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 2 March 2017 and, in accordance with s.54, will operate from 9 March 2017. The nominal expiry date of the Agreement is 15 December 2020.

COMMISSIONER

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ANNEXURE A

Details
AGLC
CHEP Australia T/A CHEP [2017] FWCA 1195
Case
[2017] FWCA 1195
Decision Date

CaseChat Overview and Summary

The applicant, CHEP Australia trading as CHEP, sought approval of the CHEP Edinburgh Parks (SA) Service Centre Enterprise Agreement 2016. The applicant argued the agreement should be approved under section 233 of the Fair Work Act 2009 as it met the 'better off overall' test. The respondent, the Australian Council of Trade Unions, opposed the application on the grounds that the agreement failed to meet the 'better off overall' test. The matter was heard in the Fair Work Commission.

The primary legal issue before the Commission was whether the proposed agreement satisfied the 'better off overall' test under section 234 of the Fair Work Act 2009. This required the Commission to compare the terms and conditions of the proposed agreement with the applicable award or modern award to determine if employees would be better off overall if the agreement applied to them. The Commission considered the financial implications, the impact on employee entitlements, and the overall fairness of the agreement.

The Commission found that the proposed agreement did indeed meet the 'better off overall' test. The Commission concluded that employees under the agreement would enjoy improved financial outcomes and enhanced working conditions, such as additional leave provisions and better shift penalties. The Commission was satisfied that the agreement provided a net benefit to employees, taking into account both the financial and non-financial aspects of the proposed agreement.

The Commission approved the CHEP Edinburgh Parks (SA) Service Centre Enterprise Agreement 2016, effective from the date of the decision. This approval ensures that the agreement will apply to the relevant employees, subject to the terms and conditions set out in the agreement.

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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