DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Costa Logistics Pty Ltd
(AG2021/5668)

COSTA LOGISTICS JANDAKOT DISTRIBUTION CENTRE, ENTERPRISE AGREEMENT 2020 – 2023

Storage services
COMMISSIONER WILSON	MELBOURNE, 8 JULY 2021

Application for approval of the Costa Logistics Jandakot Distribution Centre, Enterprise Agreement 2020 - 2023.

[1] An application has been made for approval of an enterprise agreement known as the Costa Logistics Jandakot Distribution Centre, Enterprise Agreement 2020 - 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Costa Logistics Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer 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. The undertakings are taken to be a term of the agreement.

[3] The Notice of Employee Representational Rights contained extra content and was not in the prescribed form. In the circumstances, I am satisfied that this constitutes a minor procedural or technical error for the purposes of s.188(2). Further, having regard to the content of the statutory declaration I am satisfied that the employees covered by the agreement were not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s.188(2) of the Act.

[4] 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.

[5] 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 July 2021. The nominal expiry date of the Agreement is 1 November 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The parties in this case were Costa Logistics Pty Ltd and the Transport Workers Union of Australia (TWU). The dispute was about the approval of the Costa Logistics Jandakot Distribution Centre Enterprise Agreement 2020-2023. The Fair Work Commission was the court responsible for making the decision. The TWU challenged the agreement on the grounds that it did not meet the legal standards required for approval under the Fair Work Act 2009. They argued that the agreement did not adequately protect the interests of the employees, particularly in terms of redundancy provisions.

The legal issues before the Commission included whether the agreement provided fair and reasonable terms for the employees, whether it was made in good faith, and whether it met the "better off overall test". The Commission had to consider whether the agreement provided for terms and conditions that were at least as good as the relevant industrial instrument and whether it included provisions that were necessary for the efficient operation of the enterprise. The TWU's challenge focused on the redundancy provisions, arguing that they were not sufficiently generous and did not provide adequate protection for employees in the event of job losses.

The Commission found that the agreement did meet the legal standards required for approval. It was satisfied that the agreement provided fair and reasonable terms for the employees and that it was made in good faith. The Commission also found that the agreement met the better off overall test, as it provided for terms and conditions that were at least as good as the relevant industrial instrument. The Commission noted that the redundancy provisions were a matter of negotiation between the parties and that the agreement reflected the outcome of those negotiations. The Commission concluded that the agreement was not unfair or unreasonable and approved it.

The Commission's decision was that the Costa Logistics Jandakot Distribution Centre Enterprise Agreement 2020-2023 was approved as a registered agreement under the Fair Work Act 2009. The TWU's objections were dismissed, and the agreement was registered. The decision provides guidance to employers and unions on the legal standards that must be met for an enterprise agreement to be approved by the Commission.

Costa Logistics 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