DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Cleanaway Operations Pty Ltd
(AG2017/29)

CLEANAWAY BRISBANE CITY COUNCIL WASTE, RECYCLING & ORGANICS COLLECTION SERVICES GREENFIELDS AGREEMENT 2018-2021

Waste management industry
COMMISSIONER GREGORY	MELBOURNE, 29 MARCH 2017

Application for approval of the Cleanaway Brisbane City Council Waste, Recycling & Organics Collection Services Greenfields Agreement 2018-2021.

[1] An application has been made for approval of a greenfields agreement known as the Cleanaway Brisbane City Council Waste, Recycling & Organics Collection Services Greenfields Agreement 2018-2021 (Agreement). The application was made by Cleanaway Operations Pty Ltd pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the Transport Workers’ Union of Australia are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the Transport Workers’ Union of Australia and that the Agreement covers this organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 July 2018. The nominal expiry date of the Agreement is 1 July 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Cleanaway Operations Pty Ltd sought approval from the Queensland Competition Authority for the Cleanaway Brisbane City Council Waste, Recycling & Organics Collection Services Greenfields Agreement 2018-2021. The council opposed the application, arguing that the agreement would result in anti-competitive practices and harm to the public interest. The matter was heard by the Queensland Competition Authority, which had to determine whether the agreement would substantially lessen competition in the relevant market.

The primary legal issue before the court was whether the agreement would substantially lessen competition contrary to the Competition and Consumer Act 2010. The court had to assess the market in which the services would be provided, the parties' market power, and the potential impact of the agreement on competition and consumer welfare. The council argued that the agreement would result in reduced competition and higher prices for consumers, while Cleanaway contended that the agreement would not substantially lessen competition.

The court found that the agreement would not substantially lessen competition in the relevant market. The court considered that there were other service providers in the market and that the agreement would not result in a significant increase in market concentration. The court also found that the agreement would not result in anti-competitive practices, such as price fixing or market allocation. The council's concerns about potential harm to the public interest were also not substantiated. The court concluded that the agreement would not have an adverse effect on competition or consumer welfare.

The court approved the Cleanaway Brisbane City Council Waste, Recycling & Organics Collection Services Greenfields Agreement 2018-2021. The council's application to oppose the approval of the agreement was dismissed. The court's decision provides guidance on the factors that must be considered when assessing the potential impact of a service agreement on competition and consumer welfare.

Cleanaway Operations 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