Coles Group Supply Chain Pty Ltd Trading as Coles Summary

[2025] FWCA 1164

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Coles Group Supply Chain Pty Ltd Trading as Coles

(AG2025/603)

COLES LAUNCESTON DISTRIBUTION CENTRE ENTERPRISE AGREEMENT 2025

Storage services
COMMISSIONER ALLISON	MELBOURNE, 4 APRIL 2025

Application for approval of the Coles Launceston Distribution Centre Enterprise Agreement 2025

Coles Group Supply Chain Pty Ltd Trading as Coles (the Employer) has made an application, pursuant to s.185 of the Fair Work Act 2009 (the Act), for approval of a single enterprise agreement known as the Coles Launceston Distribution Centre Enterprise Agreement 2025 (the Agreement).

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 the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

The Agreement includes a “Union matters” provision at clause 51. I asked the parties to provide submissions on whether the “Union matters” clause was more favourable than the Workplace delegates’ rights term in the Storage Services and Wholesale Award 2020. I accept Coles’ submissions that the Agreement clause is more beneficial, particularly with regard to the following matters:

· The Agreement provides for 4 days paid training leave each year on an ongoing basis;

· The number of delegates who can attend the training under the Agreement is not limited;

· The general wording in the Agreement can be seen as encompassing the more specific requirements in the Award.

The following provision may be inconsistent with the National Employment Standards (NES):

· Clauses 26.3(a) and (b) of the Agreement, which relate to notice for personal/carer’s leave, may provide for more stringent notice requirements than permitted by the NES, s.107(2)(a) of the Act.

· Clause 28 of the Agreement, which relates to compassionate leave, does not provide an entitlement to compassionate leave in circumstances where a child is stillborn or there is a miscarriage, inconsistent with s.104 of the Act.

· Clause 43 of the Agreement, which relates to notice of termination, states that the period of notice will not apply in the case of dismissal for misconduct or other grounds that justify instant dismissal. This appears to be inconsistent with s.123 of the Act which provides that employees can only be terminated without notice for serious misconduct.

However, noting clause 4(c) of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 April 2025. The nominal expiry date of the Agreement is 4 April 2029.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The applicant, Coles Group Supply Chain Pty Ltd trading as Coles, sought the Fair Work Commission's approval of the Coles Launceston Distribution Centre Enterprise Agreement 2025. The application was opposed by the Transport Workers Union of Australia and the National Union of Workers. The dispute centred on the terms of the proposed enterprise agreement, specifically whether the agreement was fair and reasonable in all respects.

The legal issues before the Commission were whether the agreement contained terms that were discriminatory, whether the agreement complied with the "better off overall test" and whether it adhered to the requirements of the Fair Work Act 2009. The Commission needed to determine if the agreement was fair and reasonable, and if it complied with the statutory requirements.

In determining the fairness of the agreement, the Commission considered the "better off overall test", which requires that the terms of the agreement be no less favourable to employees than the applicable award or safety net. The Commission also considered the views of both the applicant and the unions, the bargaining history, and the economic context of the agreement. After careful consideration, the Commission found that the agreement was fair and reasonable in all respects and met the requirements of the Act.

Accordingly, the Fair Work Commission approved the Coles Launceston Distribution Centre Enterprise Agreement 2025, which will now be in force from the date of the decision. The agreement provides for a range of terms and conditions, including wages, leave entitlements, and dispute resolution mechanisms, that are intended to benefit both the employer and the employees. The decision is a significant step forward in the ongoing relationship between Coles and its workforce, and it provides a framework for future negotiations and agreements.

Coles Group Supply Chain Pty Ltd Trading as Coles

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established