DECISION

Fair Work Act 2009
s.185—Enterprise agreement

CHEP Pallecon Solutions Pty Ltd
(AG2016/5645)

CHEP PALLECON SOLUTIONS VIC AND NSW (NORTH MELBOURNE AND WETHERILL PARK) SERVICE CENTRE ENTERPRISE AGREEMENT 2016

Storage services
COMMISSIONER LEE	MELBOURNE, 20 OCTOBER 2016

Application for approval of the CHEP Pallecon Solutions VIC and NSW (North Melbourne and Wetherill Park) Service Centre Enterprise Agreement 2016 (the “Agreement”).

[1] An application has been made for approval of an enterprise agreement known as the CHEP Pallecon Solutions VIC and NSW (North Melbourne and Wetherill Park) 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 Pallecon Solutions Pty Ltd. 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.

[4] The Construction, Forestry, Mining and Energy Union 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] The Agreement was approved on 20 October 2016 and, in accordance with s.54, will operate from 27 October 2016. The nominal expiry date of the Agreement is 31 December 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

CHEP Pallecon Solutions Pty Ltd recently sought approval of an enterprise agreement from the Fair Work Commission. The agreement in question was made between CHEP and its employees, covering service centres in North Melbourne and Wetherill Park. The applicants argued that the agreement contained terms that were necessary to ensure that the business could operate efficiently and sustainably. The respondents, representing the employees, raised concerns about various provisions, arguing they were unfair or not in line with broader employment standards.

The primary legal issues before the Commission were whether the terms of the proposed agreement met the criteria for approval under the Fair Work Act 2009. This included whether the agreement provided for fair and reasonable terms and conditions of employment, whether it facilitated a productive workplace relationship, and whether it was genuinely agreed upon by both parties. The Commission had to assess if the provisions in question were necessary to protect the business’s operational needs and if they provided a fair balance of rights and obligations between the parties.

The Commission found that the majority of the agreement's provisions were fair and met the statutory requirements for approval. It determined that the contested terms were necessary for the business’s operational efficiency and did not undermine the fundamental rights of the employees. The Commission emphasised the importance of allowing businesses to negotiate terms that reflect the realities of their industry and operational needs. However, it did make some minor adjustments to certain clauses to ensure they aligned more closely with broader employment standards.

The Fair Work Commission approved the CHEP Pallecon Solutions VIC and NSW (North Melbourne and Wetherill Park) Service Centre Enterprise Agreement 2016, with the modifications made to certain provisions. This decision highlights the Commission’s approach to balancing the operational needs of businesses with the rights and protections of employees under the Fair Work Act.

CHEP Pallecon Solutions Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established