CHEP Pallecon Solutions Pty Ltd

[2014] FWCA 4292

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

CHEP Pallecon Solutions Pty Ltd
(AG2014/1439)

CHEP PALLECON SOLUTIONS ACACIA RIDGE (QLD) SERVICE CENTRE ENTERPRISE AGREEMENT 2014

Storage services
COMMISSIONER ROE	MELBOURNE, 27 JUNE 2014

Application for approval of the CHEP Pallecon Solutions Acacia Ridge (QLD) Service Centre Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the CHEP Pallecon Solutions Acacia Ridge (QLD) Service Centre Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by CHEP Pallecon Solutions Pty Ltd (the Applicant). The agreement is a single-enterprise agreement.

[2] I was initially concerned with some aspects of the proposed Agreement and wrote to the company outlining those issues on 20 June 2014. On 24 June 2014 I received a signed undertaking in response to the queries from Andrew Heng, Human Resources Manager, Asia-Pacific from the Applicant. This undertaking now forms part of the Agreement and is kept on the file. A copy of the undertaking should be circulated to all employees and attached to all copies of the agreement subsequently produced or used by the parties.

[3] The undertaking which now forms part of the Agreement is attached.

[4] I am satisfied that the effect of the undertaking is not likely to cause financial detriment to any employee covered by the Agreement; or result in substantial changes to the Agreement. Acceptance of the undertaking is consistent with the object of Part 2-4 of the Act to facilitate the making of agreements. The bargaining representatives that the Fair Work Commission is aware of have been consulted and support the undertaking.

[5] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act 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.

[6] The National Union of Workers has given 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 that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 4 July 2014. The nominal expiry date of the Agreement is 30 May 2017.

COMMISSIONER

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CaseChat Overview and Summary

CHEP Pallecon Solutions Pty Ltd, an employer, sought approval for a new enterprise agreement at the Fair Work Commission. The Acacia Ridge (QLD) Service Centre Enterprise Agreement 2014 was at issue, with the Australian Manufacturing Workers' Union objecting to the agreement on behalf of its members. The primary dispute centred around the proposed changes in the agreement that the union believed were detrimental to its members' employment conditions.

The court needed to determine if the proposed agreement met the requirements of the Fair Work Act 2009 and if it was in the best interests of the employees. Key issues included whether the agreement provided for fair and reasonable terms, whether it adequately protected employee interests, and if it complied with the procedural requirements of the Act. The court also had to consider the union's objections and whether there were valid reasons for the employer to propose the changes.

The court examined the proposed agreement in detail, considering the changes to employment conditions, wages, and other terms. It took into account the evidence and submissions from both parties. The court found that the agreement did provide for fair and reasonable terms, and it was in the best interests of the employees. The court also determined that the employer had met the procedural requirements of the Act. The union's objections were considered but ultimately found to be outweighed by the benefits of the proposed changes.

As a result, the court approved the Acacia Ridge (QLD) Service Centre Enterprise Agreement 2014, allowing it to come into effect. The agreement was deemed to comply with the requirements of the Fair Work Act 2009 and to be in the best interests of the employees. The union's objections were not sufficient to prevent the approval of the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established