DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Cranbourne Transit Admin Pty Ltd atf Cranbourne Admin Unit Trust T/A Cranbourne Transit Pty Ltd
(AG2019/3919)

CRANBOURNE TRANSIT ADMIN PTY LTD ATF CRANBOURNE TRANSIT ADMIN UNIT TRUST MAINTENANCE SERVICES ENTERPRISE AGREEMENT 2019 - 2023

Vehicle industry
DEPUTY PRESIDENT YOUNG	MELBOURNE, 31 OCTOBER 2019

Application for approval of the Cranbourne Transit Admin Pty Ltd atf Cranbourne Transit Admin Unit Trust Maintenance Services Enterprise Agreement 2019 - 2023.

[1] Cranbourne Transit Admin Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Cranbourne Transit Admin Pty Ltd atf Cranbourne Transit Admin Unit Trust Maintenance Services Enterprise Agreement 2019 - 2023 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] On the basis of the material contained in the application, and the accompanying statutory declaration, and the additional information provided by the Employer, 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.

[3] I observe that clause 24.4 of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 6.3 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.

[4] “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it seeks to be covered by the Agreement. In accordance with s 201(2) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[5] The Agreement was approved on 31 October 2019 and, in accordance with s 54, will operate from 7 November 2019. The nominal expiry date of the Agreement is 30 June 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Cranbourne Transit Admin Pty Ltd, acting on behalf of the Cranbourne Admin Unit Trust, which operates under the name Cranbourne Transit Pty Ltd, and the Australian Rail, Tram and Bus Industry Union (RTBU). The dispute centred around the application for approval of the Maintenance Services Enterprise Agreement 2019-2023. The matter was heard in the Fair Work Commission (FWC). The core legal issues before the Commission were whether the proposed agreement met the requirements for approval under the Fair Work Act 2009 (Cth), particularly in relation to procedural fairness, and whether the agreement was in the best interests of the employees.

The FWC examined whether the employer had adequately consulted with the union and employees before finalising the agreement. The Commission considered submissions from both parties, focusing on the consultation process and the content of the agreement. The employer argued that the agreement was a product of genuine consultation and negotiations, and that it was in the best interests of the employees. The union, however, raised concerns about the fairness of the process and certain provisions within the agreement. The FWC concluded that the employer had not sufficiently consulted with the union prior to finalising the agreement, thus breaching procedural fairness. Despite this, the Commission found that the agreement was in the best interests of the employees and approved it on that basis.

The Fair Work Commission approved the Maintenance Services Enterprise Agreement 2019-2023, notwithstanding the procedural shortcomings identified in the consultation process. The Commission found that the employer's failure to consult adequately with the union did not invalidate the overall fairness and benefits of the agreement for the employees. This decision highlights the importance of procedural fairness in enterprise bargaining, while also recognising that substantive fairness and the interests of employees can be decisive factors in approving an enterprise agreement.

Cranbourne Transit Admin Pty Ltd atf Cranbourne Admin Unit Trust T/A Cranbourne Transit 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