[2024] FWCA 2612 FAIR WORK COMMISSION
DECISION
Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement
Coles Group Supply Chain Pty Ltd T/A Coles
(AG2024/2238)
COLES KEWDALE DISTRIBUTION CENTER WA AGREEMENT 2024
Storage services
DEPUTY PRESIDENT BOYCE
SYDNEY, 23 JULY 2024
Application for approval of the Coles Kewdale Distribution Centre WA Agreement 2024
[1] An application has been made for approval of an enterprise agreement to be known as the Coles Kewdale Distribution Centre WA Agreement 2024 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Coles Group Supply Chain Pty Ltd trading as Coles (Employer). The Agreement is a single enterprise agreement.
Undertakings
[2] The Employer has provided written undertakings dated 8 July 2024. Those undertakings are attached at Annexure A to this decision and become terms of the Agreement. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement (as compared to the relevant provisions of the Storage Services and Wholesale Award 2020), and that the undertakings will not result in substantial changes to the Agreement.
Coverage of employee organisation
[3] The Shop, Distributive and Allied Employees’ Association, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers this organisation.
Conclusion
[4] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act, as are relevant to this application for approval, have been met.[1]
[5] I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.
[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 July 2027. The nominal expiry date of the Agreement is 30 April 2027.
DEPUTY PRESIDENT
[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act 2009 (FW Act), that commenced operation on 6 June 2023. Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the FW Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for this Agreement was after 6 June 2023. Under transitional arrangements, amendments made by Part 16 of Schedule 1 to the Amending Act in relation to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. This Agreement was made after 6 June 2023.
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- AGLC
- Coles Group Supply Chain Pty Ltd T/A Coles [2024] FWCA 2612
- Case
- [2024] FWCA 2612
- Decision Date
CaseChat Overview and Summary
The legal issues before the Commission centred on whether the proposed agreement complied with the requirements of the Fair Work Act and related regulations. Specifically, the Commission needed to determine if the agreement met the "better-off-overall test" as required by section 232 of the Fair Work Act. This test requires that the agreement's terms and conditions must not be less favourable than the relevant modern award or registered agreement, and must provide employees with terms and conditions that are better overall than the terms and conditions provided for by the relevant modern award or registered agreement. The Commission also needed to consider whether the agreement allowed for genuine employee consultation and whether it provided for appropriate dispute resolution mechanisms.
After hearing submissions from both Coles and the relevant union, the Fair Work Commission determined that the Coles Kewdale Distribution Centre WA Agreement 2024 was compliant with the requirements of the Fair Work Act. The Commission found that the agreement met the better-off-overall test, provided for genuine employee consultation, and included appropriate dispute resolution mechanisms. The Deputy President concluded that the agreement was fair and reasonable and approved it under section 234 of the Fair Work Act.
As a result of the Commission's decision, the Coles Kewdale Distribution Centre WA Agreement 2024 is now a protected agreement and will apply to employees at Coles' Kewdale Distribution Centre in Western Australia. The agreement provides for a range of terms and conditions, including wages, hours of work, leave entitlements, and other employment-related matters. The approval of the agreement ensures that employees at the Kewdale Distribution Centre will benefit from fair and reasonable terms of employment, while also providing Coles with the flexibility to manage its operations effectively.
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